Accounting

Le Petit Croissant Ltd. (LPC) is a wholesale bakery that supplies flash frozen croissants to restaurants, hotels, and other commercial customers. LPC began operating in August 2020 and had the following transactions in its first month:

LIST OF ACCOUNTS THAT CAN BE USED IN THE EMPTY BOXES:

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Buildings
• Accumulated Depreciation-Equipment
• Accumulated Depreciation-Trucks
• Accumulated Depreciation-Vehicles
• Advertising Expense
• Buildings
• Cash
• Common Shares
• Cost of Goods Sold
• Depreciation Expense
• Dividends Payable
• Equipment
• Income Tax Payable
• Interest Expense
• Interest Payable
• Inventory
• Land
• Miscellaneous Expense
• Notes Payable
• Operating Expense
• Other Expenses
• Prepaid Insurance
• Prepaid Rent
• Rent Expense
• Rent Revenue
• Retained Earnings
• Selling and Administrative Expenses
• Supplies Expense
• Wages Payable
• Wages Expense
• Advances to Employees
• Bank Loan Payable
• Deposits
• Dividend Revenue
• Dividends Declared
• Income Tax Expense
• Income Summary
• Insurance Expense
• Interest Revenue
• Interest Receivable
• Licence Expense
• Long-Term Investments
• Mortgage Payable
• No Entry
• Notes Receivable
• Supplies
• Prepaid Licence
• Prepaid Property Tax
• Property Tax Expense
• Repair and Maintenance Expense
• Sales Revenue
• Service Revenue
• Short-Term Investments
• Telephone Expense
• Unearned Revenue
• Utilities Expense
• Vehicles

Question 2 --/20 View Policies Current Attempt in Progress Le Petit Croissant Ltd. (LPC) is a wholesale bakery that supplies flash frozen croissants to restaurants, hotels, and other commercial customers. LPC began operating in August 2020 and had the following transactions in its first month: Aug. 1 LPC issued 32,000 common shares to its two founding shareholders in exchange for $250,000 in cash and equipment valued at $70,000. 1 The company borrowed $100,000 from the Commercial Bank at an interest rate of 6%. The borrowing agreement terms state that the loan is to be repaid at the end of each month in the amount of $2,000 per month plus interest. (Use Bank Loan Payable) 3 In order to access a commercial kitchen, LPC leased the site of a former restaurant, paying $5.600, of which $2,800 represented the rent for August and the balance was a damage deposit. 8 LPC purchased flour and other ingredients costing $30,200 on account. 12 LPC paid $7,000 to a local marketing company for its logo design and media planning services. 14 LPC recorded its sales of the first two weeks of the month. Total sales (half in cash and half on account) amounted to $52,400, and the inventory related to these sales was determined to have a cost of $16,800. 19 Paid the suppliers $26,000 for goods previously purchased on account. 25 Collections from customers on account totalled $23,800. 26 LPC purchased additional inventory (flour and so on) on account for $22,000. 29 LPC received an invoice from its natural gas supplier for $2,200, which is payable on September 14. 31 LPC recorded the sales for the balance of the month. Sales for this period totalled $65,600, of which $23,000 was on account. The cost of the ingredients from inventory related to these sales amounted to $20.700. 31 LPC's 6 full-time employees were paid $3,900 each in wages for the month. 31 LPC made the loan payment required under the terms of the borrowing agreement. 31 LPC's board of directors declared a dividend of $1.00 per share to the holders of the company's common shares. Prepare all necessary journal entries related to the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 1 (To record the issuance of shares) (To record the borrowings) Aug. 3 Aug. 14 (To record sale of goods) Aug. 31 (To record sale of goods) (To record the cost) (To record wages paid to employees) Aug. 31 (To record payment of loan) (To record devidend declared)