Part A $-$ Starting a New Month

Part A

Set up a basic accounting system for your flower shop. This includes creating accounts for your assets, liabilities, and equity $($general ledger$).$

Record the following transactions for the month of January:

January $1$

You invested $$10,000$ of your own cash into the business.

You purchased a new fridge to display your arrangements for $$2,199.$

You obtained liability insurance for the entire year and paid $$1,320$ in cash.

January $2,$

You purchased $$4,000$ worth of flowers. You paid $$1,000$ in cash and the remaining $$3,000$ on account.

You purchased $$1000$ worth of supplies such as tape, cages, foam, picks, glue, and wire. You paid cash.

You hired two part$-$time employees to work $20$ hours per week each at a rate of $$16$ per hour.

January $3.$

You sold $$800$ worth of flowers to a customer for cash.

January $8$

You pay your staff the outstanding $$1,500.$

January $10,$

You sold $$2,200$ worth of flowers to a customer on account.

January $15$ :

You collected $$500$ from the customer who purchased flowers on July $10.$

You collected $$2,000$ in cash from customers for flower arrangements.

End of first pay period. Your employees worked $128$ hours in the first pay period of January. Paydays are Fridays following $5$ days after the pay period ends.

January $19$

You paid your employees $128$ hours for their work in the first two weeks of January.

January $20$

You collect $$3,000$ from customers who owe you.

You paid $$1,000$ to the wholesaler to reduce your outstanding balance.

January $22$:

You sold $$5,000$ worth of flower arrangements to a local event planner on account.

January $25$

You paid $$200$ for advertising expenses.

You received a $$500$ deposit for flower arrangements to be ready in February $14.$

January $31$:

You sold $$3,500$ worth of flowers to a customer for cash.

You paid $$2,500$ to your flower supplier for the flowers you purchased on January $2^{nd}.$

You pay yourself $$2,200($owner$\text{'}$s Withdrawal$)$

Required for part $A$

Use the templates in the Assignment Package

Journalize the transactions.

Post the January transactions to the general ledger accounts. Make sure to add the beginning balances based on the December pos$-$closing trial balance.

Prepare the trial balance for January.