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I need the T accounts for the following transactions: You are starting your own business. You have $75,000 of cash that you will invest in
I need the T accounts for the following transactions:
You are starting your own business. You have $75,000 of cash that you will invest in the start-up of this business. You will be the first business in Fort Wayne that only sells "Doohickeys" to the public. Using the below "Chart of Accounts", and creating T-Accounts, please record the first month's transactions for your business. For this exercise, your capitalization limit is $3,000 and you use straight line depreciation, 5 years. PLEASE NOTE: Not all accounts may be used. Chart of Accounts: Assets: Cash Liabilities: Accounts Payable Income: Sales Expenses: Cost of Goods Sold Accounts Receivable Payroll Payable Interest Income Payroll Inventory Notes Payable Other Income Capital Equipment Depreciation Accumulated Depreciation Capital: Owner's Equity Office Supplies Prepaid Expenses Office Equipment Utilities Repair and Maintenance Interest Rent Transactions: 1. Record your investment of $75,000 in cash 2. Purchased 1,000 Doohickeys at $3.50 each to sell. Payment is due in about two weeks. 3. Purchased a cash register for $5,000. Paid cash. 4. Purchased a security system for $7,000. Bought it on credit 5. Purchased a 70" TV for display and advertising purposes, $2,500. paid cash 6. Paid your first month's rent for your store space, $850 7. Your first day of business, you sell 500 Doohickeys at $7.00 each. Half was paid in cash, half was bought on credit (hint: 2 entries) 8. Bought $300 worth of office supplies. Bought on credit 9. Paid for my inventory that I purchased in transaction 2. 10. End of pay period. Recorded $300 in employee wages. Payday is next Friday. 11. Took out a $10,000 loan to purchase more inventory at a later date. 12. Received a check from a customer for items bought on credit. $200 13. Recorded first month's depreciation on my capital equipment. 14. Bought 3,000 of Doohickeys for resale at $3.50 each. Bought on credit 15. Bought a 1 year maintenance contract on my Secuity System - $1,200 paid cash Technician will come in once a month, starting today, and check for repairs, calibration, etc. 16. Made first loan payment. $500 but only $400 went to the principal 17. Ran a sale because business was slow. Sold 900 Doohickeys at $6.00 each! All cash sales! 18. It's payday. Paid my employees. 19. Made a 50% payment towards my security system. Will pay other half next month. 20. End of pay period. Recorded $400 in employee wages. Payday will be next week. 21. Sold 700 Doohickeys @ $7 each. 500 were sold for cash, 200 sold on credit. 22. Received payments from other customers - $1,100 23. Paid the electric bill - $300 and the water bill- $75 24. Had to have emergency repairs to my security system. $300 for parts and labor. Not covered under service contract 25. Paid for the office supplies bought in transaction 8Step by Step Solution
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