Mr. Olly Wander opened a wand shop, called Wander's Wands on November 3, 2020. The following...

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Mr. Olly Wander opened a wand shop, called "Wander's Wands" on November 3, 2020. The following were the transactions of the business: use the following accounts (cash, furniture and fixtures, prepaid rent, inventory, cost of goods sold, sales, owner's capital, accounts payable, unearned income, accounts receivable, utility expense) 1. On November 3, he invested 100,000 cash for his business. At the same date he invested his elegant table and chairs worth 150,000 which has remaining useful life of 3 years and no salvage value. Also, he paid the rent for the building worth 35,000 for 3 months starting November 3. 2. November 4, he bought 65,000 worth of wands. 3. November 15 a customer bought 40,000 worth of inventory for 80,000 on a cash basis. 4. November 18 additional stocks of wands arrived and Mr. Olly promised to pay 50,000 by January next year 5. November 20, 60,000 sales on account occurred the mark-up based on cost was 100%. 6. November 23 advance payment of a customer was received worth 50,000 for the wands ordered and to be delivered next February of the coming year. 7. November 30 Electricity for the month worth 1,500 and water for the month worth 500 was paid. Requirements: 1. Prepare Journal Entry 2. Prepare T Accounts 3. Prepare Unadjusted Trial Balance Mr. Olly Wander opened a wand shop, called "Wander's Wands" on November 3, 2020. The following were the transactions of the business: use the following accounts (cash, furniture and fixtures, prepaid rent, inventory, cost of goods sold, sales, owner's capital, accounts payable, unearned income, accounts receivable, utility expense) 1. On November 3, he invested 100,000 cash for his business. At the same date he invested his elegant table and chairs worth 150,000 which has remaining useful life of 3 years and no salvage value. Also, he paid the rent for the building worth 35,000 for 3 months starting November 3. 2. November 4, he bought 65,000 worth of wands. 3. November 15 a customer bought 40,000 worth of inventory for 80,000 on a cash basis. 4. November 18 additional stocks of wands arrived and Mr. Olly promised to pay 50,000 by January next year 5. November 20, 60,000 sales on account occurred the mark-up based on cost was 100%. 6. November 23 advance payment of a customer was received worth 50,000 for the wands ordered and to be delivered next February of the coming year. 7. November 30 Electricity for the month worth 1,500 and water for the month worth 500 was paid. Requirements: 1. Prepare Journal Entry 2. Prepare T Accounts 3. Prepare Unadjusted Trial Balance

Answer rating: 100% (QA)

Journal entries Date Account Debit Credit Nov 3 Cash 100000 Nov 3 Furniture and Fixtures 150000 Nov ... View the full answer