Flynt Freedman opened Flynts Brew, Inc., on March 1, 2010, selling gourmet coffees, teas, and desserts. Flynt
Question:
Flynt Freedman opened Flynt’s Brew, Inc., on March 1, 2010, selling gourmet coffees, teas, and desserts. Flynt contributed $5,500 in exchange for common stock to start the business. Record the following transactions into T-accounts for Flynt’s. Calculate the account balances and prepare an unadjusted trial balance at March 31, 2010.
1. On March 1, the company purchased $2,750 of inventory from the supplier with cash.
2. The company purchased equipment for $350 cash on March 15.
3. On March 30, the company paid $500 for operating expenses.
4. By the end of the month, the company had earned sales revenue of $6,500 by selling $2,000 of inventory. Cash sales were $6,000 and a local business who purchased items for a conference still owed Flynt’s $500.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers