ACCT 201 Case Fall 2019 Page 5 Question 6. In June, 2019, L&M Children's Boutique, Inc. was established in Lafayette, Louisiana, to provide designer clothing for infants and children in the Acadiana area. Bubbles Breaux and Anastasia Lee are the major stockholders in this corporation. Use the following data to prepare the journal entries for the following transactions that occurred during the month of October. June 10 Stockholders (Bubbles & Anastasia) invested $90,000 cash in the business Purchased shelves and cash register for $25,000: paid $6,000 down and signed a 1 year 6% note for the balance. Hired Trixie Keyes as a sales person. Sold 25 pairs of designer diapers for $60 each as well as 10 summer swim sets consisting of a sun-blocking swim suit and matching hat) for $150 each. All customers paid cash at the time of service, Purchased supplies for $1,300 on account. Completed and delivered a special order of customized clothing for a 3 year old for $1,000 on account. Received $700 when a customer purchased a gift card to be used in September Collected $600 from the transaction on October 17. Paid $6,000 for a one-year insurance policy effective July 1, 2019. Paid $1,000 rent and $800 for utilities used during the month. Paid receptionist $1,500 for July. 20 27 28 29 ACCT 201 Case Fall 2019 Page 5 Question 6. In June, 2019, L&M Children's Boutique, Inc. was established in Lafayette, Louisiana, to provide designer clothing for infants and children in the Acadiana area. Bubbles Breaux and Anastasia Lee are the major stockholders in this corporation. Use the following data to prepare the journal entries for the following transactions that occurred during the month of October. June 10 Stockholders (Bubbles & Anastasia) invested $90,000 cash in the business Purchased shelves and cash register for $25,000: paid $6,000 down and signed a 1 year 6% note for the balance. Hired Trixie Keyes as a sales person. Sold 25 pairs of designer diapers for $60 each as well as 10 summer swim sets consisting of a sun-blocking swim suit and matching hat) for $150 each. All customers paid cash at the time of service, Purchased supplies for $1,300 on account. Completed and delivered a special order of customized clothing for a 3 year old for $1,000 on account. Received $700 when a customer purchased a gift card to be used in September Collected $600 from the transaction on October 17. Paid $6,000 for a one-year insurance policy effective July 1, 2019. Paid $1,000 rent and $800 for utilities used during the month. Paid receptionist $1,500 for July. 20 27 28 29
