On August 31, the following transaction are to be recorded: 1. Cash raised by issuing $80,000...

 

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On August 31, the following transaction are to be recorded: 1. Cash raised by issuing $80,000 common stock 2. Cash raised by borrowing $50,000 short-term loan from the bank 3. payment of $18,000 franchise fee was paid to Global Grocer International 4. Three months' rent of $3000 prepaid in cash 5. Warehouse property purchased for $70,000 cash, land allocated $30,000, warehouse building allocated $40,000. 6. Cash raised from a $25,000 mortgage loan 7. Store fixtures purchased for $5,000 cash 8. Merchandise inventory purchased for $18,000, $8000 paid in cash, the rest put on credit. 9. Global Grocer hired two employces to start work on September 1, 2014. Using the Exhibits on the following pages, please do the following: A. Record journal entries for all transactions incurred on August 31, 2014 in the general journal (Exhibit 1). B. Post these journal entries to the T-accounts (Exhibit 2). C. Prepare the Balance Sheet for August 31, 2014 (Exhibit 3). On August 31, the following transaction are to be recorded: 1. Cash raised by issuing $80,000 common stock 2. Cash raised by borrowing $50,000 short-term loan from the bank 3. payment of $18,000 franchise fee was paid to Global Grocer International 4. Three months' rent of $3000 prepaid in cash 5. Warehouse property purchased for $70,000 cash, land allocated $30,000, warehouse building allocated $40,000. 6. Cash raised from a $25,000 mortgage loan 7. Store fixtures purchased for $5,000 cash 8. Merchandise inventory purchased for $18,000, $8000 paid in cash, the rest put on credit. 9. Global Grocer hired two employces to start work on September 1, 2014. Using the Exhibits on the following pages, please do the following: A. Record journal entries for all transactions incurred on August 31, 2014 in the general journal (Exhibit 1). B. Post these journal entries to the T-accounts (Exhibit 2). C. Prepare the Balance Sheet for August 31, 2014 (Exhibit 3).

Answer rating: 100% (QA)

A Journal entry is a record of transaction which takes place in day to day activities of a business The journal entry is based on double accounting sy... View the full answer