The following transactions occurred at the Daisy King Ice Cream Company. 1. Started business by issuing...
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The following transactions occurred at the Daisy King Ice Cream Company. 1. Started business by issuing 10,000 shares of common stock for $21,000. 2. Signed a franchise agreement to pay royalties of 6% of sales. 3. Leased a building for three years at $510 per month and paid six months' rent in advance. 4. Purchased equipment for $5,500, paying $2,000 down and signing a two-year, 12% note for the balance. 5. Purchased $1,900 of supplies on account. 6. Recorded cash sales of $900 for the first week. 7. Paid weekly salaries and wages, $370. 8. Paid for supplies purchased in item (5). 9. Paid royalties due on first week's sales. 10. Recorded depreciation on equipment, $60. Required: Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) The following transactions occurred at the Daisy King Ice Cream Company. 1. Started business by issuing 10,000 shares of common stock for $21,000. 2. Signed a franchise agreement to pay royalties of 6% of sales. 3. Leased a building for three years at $510 per month and paid six months' rent in advance. 4. Purchased equipment for $5,500, paying $2,000 down and signing a two-year, 12% note for the balance. 5. Purchased $1,900 of supplies on account. 6. Recorded cash sales of $900 for the first week. 7. Paid weekly salaries and wages, $370. 8. Paid for supplies purchased in item (5). 9. Paid royalties due on first week's sales. 10. Recorded depreciation on equipment, $60. Required: Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.)
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8 Accounts payable Cash 9 10 Royalty expenses 1100 5 Cash Depreciation expenses Accumu... View the full answer
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date:
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