Using the information provided in E4- 7, prepare CC& C’s t- accounts for all relevant accounts for the year ended December 31, 2015. Post journal entries in E4- 7 to the general ledger.
In E4- 7
Cookies, Cakes & Crumbs Bakery (CC& C) ended its first year of operations on December 31, 2015. During 2015, the following transactions occurred:
January 10: The owners of CC& C invested $ 200,000 (the par value of the stock) and acquired 20,000 shares of common stock.
March 15: CC& C purchased equipment in the amount of $ 48,000 on credit account with the vendor.
April 12: CC& C purchased supplies in the amount of $ 24,000 and paid cash.
May 31: CC& C collected $ 82,000 in sales revenue for the month, all of which was paid in cash. Ignore Cost of Goods Sold.
June 15: CC& C paid employees $ 22,000 in cash for wages.
July 31: CC& C purchased supplies in the amount of $ 16,000 on credit account with the supplier.
September 30: CC& C paid the balance due to the equipment vendor for the purchase made on March 15.
November 10: CC& C paid the balance due to the supplier for the purchase made on July 31.
November 30: CC& C recorded sales revenue in the amount of $ 216,000, half on credit and the other half paid in cash. Ignore Cost of Goods Sold.
December 20: The customers who owed CC& C for the November 30 purchases paid their ­balances in full with cash.
CC& C uses the following chart of accounts:
Assets
100 Cash
101 Accounts Receivable
102 Supplies
111 Equipment
Liabilities
200 Accounts Payable
Stockholders’Equity 300 Common Stock
Revenues
400 Sales Revenue
Expenses
503 Wage Expense