Question
CAN YOU PLEASE EXPLAIN IT IN FULL DETAILSSS For the next 20 days (ending September 30th) of your business operations: Using the general journal, provide
CAN YOU PLEASE EXPLAIN IT IN FULL DETAILSSS
For the next 20 days (ending September 30th) of your business operations:
Using the general journal, provide entries reflecting a merchandise sale for cash and another merchandise sale on account.
Using the general journal, provide entries reflecting payment of the accounts receivable created in P1 of the LIA assignment
THIS IS THE PART 1 OF THE ASSIGNMENT:
Using a general journal, record your original investment into the business identifying cash and equipment. Your cash invested will be in the amount of $100,000 and your equipment will be up to $50,000 (you need to decide how much equipment you will need)
Date | Account | PR | Debit | Credit |
Sept. 1 | Cash | 101 | 100 000 | |
Equipment | 160 | 50 000 | ||
AthleticX Capital | 190 | 150 000 |
Using the general journal, provide entries relating to the use of your original investment to acquire office supplies, prepaid rent for the first 3 months of operation and merchandise inventory.
Date | Account | PR | Debit | Credit |
Sept. 1 | Cash | 101 | 100 000 | |
Equipment | 160 | 50 000 | ||
AthleticX Capital | 190 | 150 000 | ||
Sept. 2 | Supplies | 120 | 60 000 | |
Cash | 101 | 60 000 | ||
Prepaid Rent | 150 | 12 000 | ||
Cash | 101 | 12 000 | ||
Sept. 10 | Inventory | 140 | 78 000 | |
Cash | 78 000 |
Using the general journal, provide entries reflecting a merchandise sale for cash and another merchandise sale on account.
Date | Account | PR | Debit | Credit |
Sept. 1 | Cash | 101 | 100 000 | |
Equipment | 160 | 50 000 | ||
AthleticX Capital | 190 | 150 000 | ||
Sept. 2 | Supplies | 120 | 60 000 | |
Cash | 101 | 60 000 | ||
Prepaid Rent | 150 | 12 000 | ||
Cash | 101 | 12 000 | ||
Sept. 10 | Inventory | 140 | 78 000 | |
Cash | 101 | 78 000 | ||
Sept. 14 | Cash | 101 | 20 000 | |
Revenue | 190 | 20 000 | ||
Sept. 20 | Account Receivable | 200 | 32 000 | |
Revenue | 190 | 32 000 | ||
Sept. 24 | Supplies | 120 | 13 000 | |
Cash | 101 | 13 000 | ||
Sept. 27 | Account receivable | 200 | 8 000 | |
Revenue | 190 | 8 000 | ||
Sept. 30 | Supplies | 120 | 3 000 | |
Cash | 101 | 3 000 | ||
balance | 376 000 | 376 000 |
THIS IS PART 2 OF THE ASSIGNMENT (PLEASE DO THE PART 2 USING THE INFO FROM PART 1 IF NEEDED).
Using the general journal, provide entries reflecting an unearned merchandise sale for cash on the 15th of September.
The goods will be delivered on September 29th. Using the general journal, provide an entry reflecting a 3 year term renewable contract loan with a 6 year amortization period on additional equipment or a delivery vehicle up to $20,000. The loan is effective as of the 1st of September but is being recorded on the 15th of September. The bank agrees to provide the loan if the business invests 20% on the cost price of the equipment or delivery vehicle. The loan will bear an annual interest expense of 6%.
On the 30th of September prepare entries for:
- Paying 1 months salaries in cash
- An adjusting entry for the prepaid insurance above and the prepaid rent from Part 1 (assume both are effective as of the 1st of September)
- An adjusting entry for the interest expense and principal portion due and paid on the loan at the end of September.
- Employees worked the last week of September but will only be paid in October. The amount owed is $1,000 dollars. Prepare an adjusting journal entry to reflect this expense to be recognized in September.
- Depreciation expense for the depreciable assets (assume a full months depreciation for September)
- Post the September month's journal entries to the GL
- sumbit a trial balance for September
- submit an Income Statement for the month of September
- submit a Statement of Changes in Equity
- submit a Balance Sheet
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