ACCT 201 Case Fall 2020 Page 5 Question 6. In June, 2020, Fashion, Inc. was established in Lafayette, Louisiana, to provide designer clothing for infants and children in the Acadiana area. Lexi Little and Annie Kone 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 June. June 1 3 6 13 17 Stockholders (Little & Kane) invested $120,000 cash in the business. Purchased shelves and cash register for $18,000; paid $6,000 down and signed a 1 year 6% note for the balance. Hired Trixie Keyes as a salesperson Purchased supplies for $1,500 on account. Completed and delivered a special order of customized clothing for a 3 year-old for $1,000 on account. Received $200 when a customer purchased a gift card to be used in the future. Collected $100 from the transaction on June 17. Paid $6,000 for a one-year insurance policy effective July 1, 2020, Paid $1,000 rent and $500 for utilities used during the month. Paid receptionist $1,500 for June. 20 26 27 28 29 Date Account Titles Ref Debit Credit ACCT 201 Case Fall 2020 Page 7 31, 2020 Question 7: Using the following dato, prepare the adjusting entries for the month ended December a. Insurance in the amount of $400 expired during December & On December 1, the supplies account had a balance of $600 $2,800 of supplies were purchased during December. A physical count of supplies on December 31 indicated $1,400 on hand. c. Depreciation on equipment for December is $1,000. d. Employees are paid $5,000 every Friday for the five-day work week Monday - Friday. They were last paid on Friday, December 26. December 31 is a Wednesday. Date Account Titles Ref Debit Credit - END OF CASE ACCT 201 Case Fall 2020 Page 5 Question 6. In June, 2020, Fashion, Inc. was established in Lafayette, Louisiana, to provide designer clothing for infants and children in the Acadiana area. Lexi Little and Annie Kone 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 June. June 1 3 6 13 17 Stockholders (Little & Kane) invested $120,000 cash in the business. Purchased shelves and cash register for $18,000; paid $6,000 down and signed a 1 year 6% note for the balance. Hired Trixie Keyes as a salesperson Purchased supplies for $1,500 on account. Completed and delivered a special order of customized clothing for a 3 year-old for $1,000 on account. Received $200 when a customer purchased a gift card to be used in the future. Collected $100 from the transaction on June 17. Paid $6,000 for a one-year insurance policy effective July 1, 2020, Paid $1,000 rent and $500 for utilities used during the month. Paid receptionist $1,500 for June. 20 26 27 28 29 Date Account Titles Ref Debit Credit ACCT 201 Case Fall 2020 Page 7 31, 2020 Question 7: Using the following dato, prepare the adjusting entries for the month ended December a. Insurance in the amount of $400 expired during December & On December 1, the supplies account had a balance of $600 $2,800 of supplies were purchased during December. A physical count of supplies on December 31 indicated $1,400 on hand. c. Depreciation on equipment for December is $1,000. d. Employees are paid $5,000 every Friday for the five-day work week Monday - Friday. They were last paid on Friday, December 26. December 31 is a Wednesday. Date Account Titles Ref Debit Credit - END OF CASE
