HMGT 302 Chapter 3 Problem Due Session 6 Part I Due Session 8 Part II & III Problem Healthy Bites, is an incorporated organic packaged food start-up located in Gowanus, Brooklyn During the first month of operations of the business, the following events and transactions occurred. 1 A venture capital firm invested $39,000 cash in exchange for common stock. 2 Healthy Bites hired a marketing director at a salary of $1,800 per month. 3 Purchased $1,500 of organic food supplies on account from Keith's Farm. 7 Paid warehouse rent of $1,200 for the month. 11 Sold 15 cases of Healthy Bites product and Joe's Bar $1,700 for product sold. 12 Received $5,000 advance on products to be delivered at a later date. 17 Received cash of $1,500 for product sold to The Ale House. 31 Paid marketing director $1,800 salary for the month. 31 Paid 35% of balance due Keith's Farm. The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Food Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No. 400 Sales Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense. Instructions (a) Journalize the transactions. (Part I). (b) Post to the ledger accounts (Part II). (e) Prepare a trial balance on May 31, 2016 (Part II). Part III Income Statement Retained Earnings Statement Balance Sheet HMGT 302 Chapter 3 Problem Part II Healthy Bites General Ledger Cash Expl. No. 101 Debit Credit Balance Date Ref Date Unearned Revenue No. 205 Expl. Ref Debit Credit Balance Date Common Stock No. 311 Expl. Ref Debit Credit Balance Food Supplies Expl. Ref Date No. 126 Debit Credit Balance Date Sales Revenue No. 400 Expl. Ref Debit Credit Balance Date Accounts Payable Expl Ref No. 201 Debit Credit Balance Salaries Expense No. 726 Expl.Ref Debit Credit Balance Date Rent Expense No. 729 Expl. Ref Debit Credit Balance Date HMGT 302 Chapter 3 Problem Part II Cr Healthy Bites Trial Balance 31-May-16 Dr Cash Food Supplies Accounts Payable Unearned Revenue Common Stock Sales Revenue Salaries Expense Rent Expense 0 9 1009 PM Tue Oct 27 bbhosted.cuny.edu Part III Healthy Bites Income Statement For the Month Ended May 31, 2016 Sales Revenue Sales Revenue Total Sales Revenue Expenses Salaries Expense Rent Expense Total Expenses Net Income Healthy Bites Retained Earnings Statement For the Month Ended May 31, 2016 Retained earnings, May 1 Add: Net Income Less: Dividend Retained earnings, May 31 S 100% Tue Oct 27 bbhosted.cuny.edu HMGT 302 Chapter 3 Problem Part III Healthy Bites Balance Sheet 31-May-16 Assets Cash Food Supplies Total Assets Liabilities and Stockholders' Equity Liabilities Accounts Payable Unearned Revenue Total Liabilites Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity