Make the accounting entries in the journal UNTIL 03/31/2019, indicating only the variation of the elements. Consider
Question:
Make the accounting entries in the journal UNTIL 03/31/2019, indicating only the variation of the elements. Consider that the company uses the straight-line depreciation method - full year of registration and the FIFO criterion.
To complete:
• On 03/01/2019 a public limited company was established under the name ‘’ SOLESSA ’’ dedicated to the purchase and sale of sportswear. The subscribed capital stock amounts to $ 500,000 and at that time the shareholders integrate $ 120,000 in cash, $ 300,000 in merchandise (corresponding to 3,000 pants at $ 100 each) and $ 100,000 by delivering a property that has a mortgage of $ 20,000. The rest depends on integration.
• On 03/03/2019 an account was opened at Santander bank, depositing that same day 60% of the cash with which the company was integrated. The bank debits the checking account $ 1,000 for checkbook expenses.
• On 03/06/2019, the fixed-term placement is made in Banco Santander for $ 10,000 for 90 days with an interest of 2% per month.
• On 03/08/2019, 1,000 sports pants are purchased at $ 150 each and it is paid in 90 days, with an interest of 3% quarterly. Also, freight charges of $ 900 are paid by bank transfer.
• On 03/12/2019 2,500 pants are sold at $ 200 each. Half is charged in cash and the rest in commercial checking account.
• On 03/20/2019 the electricity bill arrives, which expires on 04/01/2019 for the amount of $ 1,500
• On 03/31/2019 the physical count of units is carried out and a missing of 20 pants is detected.
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen