Question
Graham Robert started a business, Candies Unlimited, in January, 2019. The transactions that occurred in January are listed below. 1/1/19 Graham opened a bank account
- Graham Robert started a business, Candies Unlimited, in January, 2019. The transactions that occurred in January are listed below.
1/1/19 Graham opened a bank account in the name of a new business, Computer Repairs, by making a deposit of $45,000 cash in exchange for 25,000 shares of $1 par value common stock.
1/3/19 The company paid the first month rent in the amount of $2,400 for the store space he was using.
1/3/19 The company bought a computer for $3,000, and paid cash.
1/3/19 The company purchased and installed store fixtures for $18,000. The company paid $3,600 in cash and signed a 1 year note for the balance.
1/5/19 The company purchased some inventory for $15,000 on credit.
1/15/19 The company recorded sales for the first half of the month. Cash sales were $9,000 and credit sales were $3,000. The cost of the inventory sold was $7,200.
1/20/19 The company paid cash for the initial electric bill, in the amount of $530.
1/24/19 The company collected $1,750 in cash on the credit sales recorded on 1/15.
1/31/19 The company recorded sales for the second half of the month. Cash sales were $5,000 and credit sales were $2,000. The cost of the inventory sold was $4,200.
- Prepare journal entries for these transactions.
- Post them to T-accounts.
- Prepare the Trial Balance as of January 31, 2019.
Please provide step-by-step solutions in a structured manner like a pro. Thanks
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