1. In January, 2020 you have decided to start a Pizza place named Delicious in Lefke. a) Record Delicous" transactions in general journal form. (60 points) Jan. 1 Unfortunately, you have no money. You sold 10.000 shares of stock to your friends in Exchange for $50,000 in cash. Date Debit Credit DbCr Jan. 4 Purchased an oven for $3000. Made a 53000 cash downpayment and issued an 1-year notes payable for the remaining balance. Date Dehlt Credit Der Jan. 8 Received the electricity bill for the month for the amount of S500. Electricity bill is due January 31. Date Debit Credit DbCr Jan. 10 You bought supplies (ingredients) for the pizzas and paid $50 in cash. You also bought a motorbike on account for S5000 for the delivery boys. You will pay the motorbike later, in one months time. Date Debit Credit DCT Jan. 15 Some students did not pay for the pizzas. They bought on account. You have billed those students for the amount of $40. Date Debit Credit Date Debit Credit Db Cr an. 16 $10 of supplies you have previously purchased on January 10 was not good. You have returned the supplies and received S10 in cash. Date Debit Credit Db Jan. 31 Paid rent for the pizza shop for the amount of $100 Date Debat Credit DC Jan. 31 Paid $300 in salaries earned by employees during the month Date Debit Credit bbc Jan. 31 Declared a S1000 dividend payable (will be payed later) on May 31, Date Debit Credit DhCH Jan. 31 Paid the electricity bill of $500 you have received on January 8 Date Debit Credit DbCr Jan. 31 Received a S21 payment on the S40 account receivable recorded on January 15. Date Dehlet Credit bbc Jan. 31 $450 worth of pizzas were sold in cash for the whole month Date Debt Credit Bb C The account titles used by Delicious are: Supplies Dividends Sales Dividends Payable Electricity Expense Rent Cash Accounts Receivable Revenue Accounts Payable Expense Notes Payable Motorbike Oven Capital Stock Retained Earnings Salaries Expense b) Post each entry to the appropriate ledger accounts and calculate the ending balance. (use the T-account format given below) (14 points) (Do not forget to put the date) Cash Accounts Receivable Debit Credit Debit Credit Balance: Balance: Accounts Payable Notes Payable Debit Credit Debit Credit Balance: Balance: Oven Capital Stock Debit Credit Debit Credit Balance: Balance: Sales Revenue Electricity Expense Debit Credit Dehit Credit Balance: Balance: Motorbike Salaries Expense Debit Credit Debit Credit Balance: Balance: Supplies Dividends Payable Debit Credit Debit Credit Balance: Balance: Rent Expense Dividends Debit Credit Debit Credit Balance: Balance: c) Prepare a trial balance dated January 31, 2020 for Delicious. (14points) DELICIOUS TRIAL BALANCE JANUARY 31, 2020 Debit Credit Tocal d) Prepare a balance sheet dated January 31, 2020. Please fill the table below. Please calculate retained earnings. (Yes you can have negative retained earnings!!) (8 points) DELICIOUS AT JANUARY 31, 2020 BALANCE SHEET Liabilities and Owners Equity: Total Liability Ciners Equity Retained in Total Owners Equity Total Assets Total Lilies and Owners Equity e) Prepare an income statement for Dogies for the month ended January 31, 2020. (4 points) DELICIOUS INCOME STATEMENT FOR THE MONTH ENDED JANUARY 31, 2020 Revenues
