The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of...
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The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,500. b. The firm borrowed $4,800 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,800 were purchased for cash. The original list price of the equipment was $1,960, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,250 was paid for the first month's rent. e. Inventory of $15,400 was purchased; $9,700 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $5,000 was sold for $5,900 cash. g. A newspaper ad costing $140 was arranged for; it ran during the second week of the store's operations. The ad will be paid. for in the next month. h. Additional inventory costing $4,500 was purchased; cash of $1,300 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $14,000, of which $9,900 was sold on account. The cost of the goods sold totaled $8,500. j. Employee wages for the month totaled $1,900; these will be paid during the first week of the next month. k. The firm collected a total of $3,200 from the sales on account recorded in transaction i. 1. The firm paid a total of $4,850 of the amount owed to suppliers from transaction e. Required: Prepare the journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,500. b. The firm borrowed $4,800 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,800 were purchased for cash. The original list price of the equipment was $1,960, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,250 was paid for the first month's rent. e. Inventory of $15,400 was purchased; $9,700 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $5,000 was sold for $5,900 cash. g. A newspaper ad costing $140 was arranged for; it ran during the second week of the store's operations. The ad will be paid. for in the next month. h. Additional inventory costing $4,500 was purchased; cash of $1,300 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $14,000, of which $9,900 was sold on account. The cost of the goods sold totaled $8,500. j. Employee wages for the month totaled $1,900; these will be paid during the first week of the next month. k. The firm collected a total of $3,200 from the sales on account recorded in transaction i. 1. The firm paid a total of $4,850 of the amount owed to suppliers from transaction e. Required: Prepare the journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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Here are the journal entries for the given transactions a The firm was organized and the stockholders invested cash of 7500 Cash Debit Credit 7500 Com... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
Posted Date:
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