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how do i make a journal entry with this information On January 1, 20x1, Barbecorp was formed to sell outdoor grills. 10,000 shares of $10
how do i make a journal entry with this information
On January 1, 20x1, Barbecorp was formed to sell outdoor grills. 10,000 shares of $10 par value stock were issued in exchange for $70,000 cash, land worth $60,000 and a truck worth $15,000. Subsequently, the following events occurred: January 1: Purchased $6,000 worth of office equipment on account. Purchased franchise to sell Crispy Cook grills for 10 years. Paid $20,000 cash and signed a 10- year note for $40,000 with 10% annual interest. $4,000 of the principal on the note is to be paid each year on January 1. The first payment will be on January 1, 20X2. Interest is to be paid twice each year, on July 1 and January 1. February 1: Paid salaries for the month of January - $3,000. Purchased inventory for cash: 200 deluxe gas units at $75 each 300 regular gas units at $50 each 100 charcoal units at $20 each. Purchased one year of liability insurance for $4,000 cash. Purchased advertising for $6,000 cash. Sales for the month of February - $5,000 all in cash. March 1: Paid salaries for February - $3,000 Paid for office equipment purchased in January. Purchased truck for $15,000. $5,000 was paid in cash and the balance was paid in the form of a $10,000, 1-year note with a 12% annual interest rate. All interest and principal will be paid on March 1, 20x2. Sales for the month of March - $8,000; $5,000 cash, $3,000 on account. April 1: Paid salaries for March - $3,000. Sales for the month of April - $10,000; $6,000 cash, $4,000 on account. May 1: Paid salaries for April - $3,500. Purchased inventory for cash: 100 deluxe units at $80 per unit 100 regular units at $60 per unit 30 charcoal units at $25 per unit. Collected all accounts receivable from March and April sales. Sales for the month of May - $18,000, 2/3 in cash, the rest on account. June 1: Paid salaries for May - $3,500. Collected all accounts receivable from May sales. Purchased automobile for $12,000 cash. Paid six month's rent on parking lot - $1,200 cash. Sales for the month of June - $24,000; % in cash, the rest on account. July 1: Paid salaries for June - $4,000. Paid interest payment under the franchise agreement. Collected all accounts receivable from June sales. Purchased advertising on account - $2,000. Purchased inventory on account: 120 deluxe units at $65 per unit 80 regular units at $40 per unit 50 charcoal units at $15 per unit. Sales for the month of July - $30,000; X in cash, the rest on account. August 1: Paid salaries for July - $4,000. Declared dividend of $1 per share of common stock, payable on October 1, 20X1. Collected $5,000 of accounts receivable from July sales. Sales for the month of August - $32,000; X in cash, the rest on account. September 1: Paid salaries for August - $3,500. Office equipment has a seven-year useful life and no salvage value. The trucks have five-year useful lives and estimated salvage value of $1,000 each. The automobile has a three-year useful life and $2,000 estimated salvage value. Depreciation for the office equipment is figured using straight-line; for the trucks - double-declining balance; for the car-double-declining balance. Monthly depreciation is calculated by dividing the annual amount by 12. The inventory at 8/31/20X1 is 130 deluxe units, 100 regular units and 60 charcoal units. FIFO is used for deluxe units, LIFO for regular units and weighted average for charcoal units. The franchise is amortized on a straight line basis Step by Step Solution
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