Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jessica Pothier opened FunFlatables on June 1. The company rents out moon walks and inflatable slides for parties and corporate events. The company also has

Jessica Pothier opened FunFlatables on June 1. The company rents out moon walks and inflatable slides for parties and corporate events. The company also has obtained the use of an abandoned ice rink located in a local shopping mall, where its rental products are displayed and available for casual hourly rental by mall patrons. The following transactions occurred during the first month of operations.

1. Jessica contributed $42,000 cash to the company on June 1 in exchange for its common stock.
2. Purchased inflatable rides and inflation equipment on June 2, paying $26,550 cash.
3. Received $9,200 cash from casual hourly rentals at the mall on June 3.
4. Rented rides and equipment to customers for $11,150. Received cash of $4,800 on June 4 and the rest is due from customers.
5.

Received $5,200 from a large corporate customer on June 5 as a deposit on a party booking for July 4.

6.

Began to prepare for the July 4 party by purchasing various party supplies on June 6 on account for $860.

7. On June 7, paid $10,150 in cash for renting the mall space this month.
8. On June 8, prepaid next months mall space rental charge of $10,150.
9. Received $1,800 on June 9 from customers on accounts receivable.
10. Paid $2,800 for running a television ad on June 10.
11. Paid $5,000 in wages to employees on June 30 for work done during the month.

Prepare the journal entry for each of the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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

Managerial Accounting

Authors: Carl L. Moore

5th Edition

0538019409, 978-0538019408

More Books

Students also viewed these Accounting questions