IS THIS CORRECT?
Corrections Transactions for April 1st and November 1st
Grooming and boarding equipment with a useful life of 2 years is purchased for cash in the amount of $22,000. This will give us two items, the grooming equipment and boarding equipment. One of the two was purchased for $2,400 and the other for $19,600. The item that was purchased for $2,400 was sold for $2,000. No salvage value, straight line depreciation.
Transactions of July 31st and August 6th Please note below the correction to transactions of July 31st and August 6th
| July 31st | 105 units of gourmet dog food are sold for $70 per unit with terms 2/10, n/30. The sale is recorded using the net method in the amount of (see note c for cost flow assumptions) | 7,350 |
| August 6th | The company receives full payment from the customer for the July 31st sale | 7,203 |
= $7,350 less 2% for early payment (terms 2/10); that is take 2% off if payment is made within 10 days.
= $7,350 x 98%
= $7,203
You have decided to open a dog-walking company. Happy Pets was incorporated on January 1st, 2019. The business maintains a retail pet store, providing gourmet dog food and treats, and also provides a full range of pet care services, including grooming, dog-walking, and boarding. During the year, your company engages in many business transactions Download the Excel spreadsheet Happy Pets Inc. for your company in the module folder. The spreadsheet includes the following tabs: Units Unit Cost January 1st 395,000 Common stock is issued in exchange for cash in the amount of February 8th The company purchases and pays for 170 units of gourmet dog food at a price of $25 per unit The company pays cash for a one-year insurance policy in the amount of Rent on a retail space for 12 months is paid in the amount of Grooming and boarding equipment with a useful life of 2 years is purchased for cash in the amount of... Grooming supplies purchased- The company purchases and pays for another 380 units of goumet dog food at a price of $29 per unit Grooming services are performed on account in the amount of ....... The company pays for advertisements to be run for the next 12 months in the amount of The company issues a 5-year notes payable with their bank for $100,000 and interest at an annual rate of 6%. Interest is due on June 30th each year and the principal will be paid in full at the end of the 5 year period Dog-walking 105 units of goumet dog food are sold for $70 per unit with terms 2/10, n/30. The sale is recorded using the gross method in the amount of (see note c for cost flow assumptions) Boarding services are The company receives full payment from the customer for the July 31st sale Pet sitting services are performed on account in the amount of Customer payments are received for services previously provided in the amount of 100 units of gourmet dog food are sold for $73 per unit with terms 2/10, n/30. The sale is recorded using the net method in the amount of ......... 4,250 170 25 3,900 13,480 22,000 1,540 11,020 12,625 March 1st March 31st April 1st Aprl 10th May 15th May 30th June 1st June 30th on account in the amount of. . 380 29 964 100,000 July 25th July 31st 14,522 services are performed on account in the amount of 7,350 -105 29 August 2nd August 6th September 15th September 29th 6,380 6,617 6,345 provided on account in the amount of 1,350 October 13th 7,300 3,650 -100 29 The company recerves payment for half of the October 13th sale Equipment oniginally purchased A bookkeeper is hired to help the company with daly accounting taxes and annual tas preparation The bookkeeper is paid $4,500 for the previous month's services October 29th November 1st Aprl 1st for $2400 is sold for $2000 cash on November 15th December 15th 4,500 Date Accounts Debit Credit 1-Jan Cash 395,000 Common Stock 395,000 8-Feb Inventory 4,250 Cash 4,250 1-Mar Prepaid insurance 3,900 Cash 3,900 31-Mar Prepaid rent Cash 1-Apr Equipment 13,480 13,480 22,000 Cash 22,000 10-Apr Supplies Accounts payable 1,540 1,540 15-May Inventory Cash 11,020 11,020 30-May Accounts receivable Service Revenue 12,625 12,625 1-Jun Prepaid advertising Cash 964 964 30-Jun Cash 100,000 Notes payable 25-Jul Accounts receivable 100,000 14,522 Service Revenue 14,522 31-Jul Accounts receivable Service Revenue 31-Jul Cost of goods sold Inventory 2-Aug Accounts receivable Service Revenue 7,350 7,350 2,625 2,625 6,380 6,380 6-Aug Cash 7,203 Sales discount Accounts receivable 147 7,350 15-Sep Accounts receivable Service Revenue 6,345 6,345 29-Sep Cash 1,350 Accounts receivable 13-Oct Accounts receivable Service Revenue 1,350 7,154 7,154 13-Oct Cost of goods sold Inventory 29-Oct Cash 2,900 2,900 3,650 Accounts receivable Sales discount 3,577 73 1-Nov Depreciation 700 Accumulated Depreciation 700 15-Nov Cash 2,000 Accumulated Depreciation Equipment Gain on sale of equipment 700 2,400 300 15-Dec Salary Expense Cash 4,500 4,500 632,305 632,305
