Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please On January 1, 2023, Gabby decided to open a business registered as Gabrielle, UC. Gabby contributed Cash, $1,000,000; and Furniture that has a

help please image text in transcribed
On January 1, 2023, Gabby decided to open a business registered as Gabrielle, UC. Gabby contributed Cash, $1,000,000; and Furniture that has a fair market value of $500,000 and a cost 0$300,000. There was an outstanding note of $100,000 on the furniture and Gabrielle, UC assumed the outstandling note payable. The following are the addibional transactions that Gabrielle, LC engaged in during the month of January. 2023. Jan 1, interviewed Erich to serve as Operation manager on a part time basis at a salary of $15,000 per month. Erich accepted the job and agreed to start on January 16, 2023. Jan 5, Borrowed $600,000 from Bank of America and issued a promkssory note to the bank. Jan 8, Bought supplies for $60,000, paying $40,000 now and promising to pay the balance on January 31 , 2023. Jan 15 Performed $50,000 services for a customer and collected $30,000. The balance is to be collected In future. Jan 16, Erich reported for duty as a follow up on his acceptance of the position as an Operation Manager at a salary of $15,000 per month. Jan 31, Accrued $6,000 interest on the promissory note issued to the bank on lanuacy 5. Jan 32, Services performed but nelther billed nor recorded was $25,000. Jan 31. Supplies used during the month was $12,000. Jan 31. Pald Erich $15,000 for the services performed during the month of January. Required: a. Prepare general joumal entries based on the information above. b. Post the journal entries to the general ledger. c. Prepare a trial balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119

More Books

Students also viewed these Accounting questions