Please answer B2 I provided the answers to B1 (and by Jan 28 for B1 I did not crop well theres only one debit for 160) Thank you
Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is to become the exclusive distributor of a line of fine European mixers. The current cost of a mixer is approximately $550, and Natalie would sell each one for $1,100. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Natalie decides to use the perpetual method of accounting for inventory, and the following transactions happen during the month of January. Jan. 4 6 7 8 12 13 14 She buys five deluxe mixers on account from Kzinski Supply Co. for $2,750, terms n/30. She pays $100 freight on the January 4 purchase. Natalie returns one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of the mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. She collects the amount due from the neighborhood community center that was accrued at the end of December 2014. She sells three deluxe mixers on account for $3,300, FOB destination, terms n/30. The mixers cost $570 each (including freight). Natalie pays her cell phone bill previously accrued in the December adjusting journal entries. She pays $75 of delivery charges for the three mixers that were sold on January 12. She buys four deluxe mixers on account from Kzinski Supply Co. for $2,200, terms n/30. Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She issues additional common stock for $1,000. She pays $80 freight on the January 14 purchase. She sells two deluxe mixers for $2,200 cash. Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for amounts owing at December 31, 2014. Recall that Natalie's assistant earns $8 an hour. Natalie collects amounts due from customers in the January 12 transaction. She pays Kzinski all amounts due. Cash dividends of $750 are paid. 14 17 18 20 28 28 31 31 Prepare the January 2015 transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 4 v Inventory 2750 M 2750 Jan. 6 Accounts Payable Inventory 100 Cash 100 Jan. 7 Accounts Payable 570 570 Inventory Cash 450 Jan. 8 V Accounts Receivable 450 Jan. 12v Accounts Receivable 3300 Sales Revenue 3300 Cost of Goods Sold Jan. 12 1710 Inventory 1710 Jan. 13 Accounts Payable 75 Cash 75 ! Jan. 14 Freight-Out 75 Cash 75 Jan. 14 v Inventory 2200 Accounts Payable 2200 Jan. 17 Cash 1000 Common Stock 1000 Jan. 18 Inventory 80 Cash 80 Cash 2200 Jan. 20 v Sales Revenue 2200 Jan. 20 Cost of Goods Sold 1140 Inventory 1140 Jan. 28 Salaries and Wages Expen: 160 Jan. 28 TSalaries and Wages Expen: 160 Salaries and Wages Payabl 56 Cash 216 Jan. 28 Cash 3300 Accounts Receivable 3300 Jan. 31 v Accounts Payable 4380 Cash 4380 Jan. 31 Dividends 750 Cash 750 (52) Post the January 2015 transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Date Explanation Debit Credit Balance Balance Accounts Receivable Date Explanation Debit Credit Balance Balance Inventory Date Explanation Debit Credit Balance Supplies Date Explanation Debit Credit Balance Balance Prepaid Insurance Date Explanation Debit Credit Balance Balance Debit Credit Balance Equipment Date Explanation Balance Accumulated Depreciation Equipment Date Explanation Debit Credit Balance Balance Website Date Explanation Debit Credit Balance Balance Accounts Payable Date Explanation Debit Credit Balance v Balance Salaries and Wages Payable Date Explanation Debit Credit Balance Balance Interest Payable Date Explanation Debit Credit Balance Balance Unearned Service Revenue Date Explanation Balance Debit Credit Balance Notes Payable Date Explanation Debit Credit Balance v Balance Common Stock Date Explanation Debit Credit Balance Balance Retained Earnings Date Explanation Debit Credit Balance Balance Dividends Date Explanation Debit Credit Balance Sales Revenue Date Explanation Debit Credit Balance Cost of Goods Sold Date Explanation Debit Credit Balance Salaries and Wages Expense Date Explanation Debit Credit Balance Freight-out Date Explanation Debit Credit Balance Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is to become the exclusive distributor of a line of fine European mixers. The current cost of a mixer is approximately $550, and Natalie would sell each one for $1,100. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Natalie decides to use the perpetual method of accounting for inventory, and the following transactions happen during the month of January. Jan. 4 6 7 8 12 13 14 She buys five deluxe mixers on account from Kzinski Supply Co. for $2,750, terms n/30. She pays $100 freight on the January 4 purchase. Natalie returns one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of the mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. She collects the amount due from the neighborhood community center that was accrued at the end of December 2014. She sells three deluxe mixers on account for $3,300, FOB destination, terms n/30. The mixers cost $570 each (including freight). Natalie pays her cell phone bill previously accrued in the December adjusting journal entries. She pays $75 of delivery charges for the three mixers that were sold on January 12. She buys four deluxe mixers on account from Kzinski Supply Co. for $2,200, terms n/30. Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She issues additional common stock for $1,000. She pays $80 freight on the January 14 purchase. She sells two deluxe mixers for $2,200 cash. Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for amounts owing at December 31, 2014. Recall that Natalie's assistant earns $8 an hour. Natalie collects amounts due from customers in the January 12 transaction. She pays Kzinski all amounts due. Cash dividends of $750 are paid. 14 17 18 20 28 28 31 31 Prepare the January 2015 transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 4 v Inventory 2750 M 2750 Jan. 6 Accounts Payable Inventory 100 Cash 100 Jan. 7 Accounts Payable 570 570 Inventory Cash 450 Jan. 8 V Accounts Receivable 450 Jan. 12v Accounts Receivable 3300 Sales Revenue 3300 Cost of Goods Sold Jan. 12 1710 Inventory 1710 Jan. 13 Accounts Payable 75 Cash 75 ! Jan. 14 Freight-Out 75 Cash 75 Jan. 14 v Inventory 2200 Accounts Payable 2200 Jan. 17 Cash 1000 Common Stock 1000 Jan. 18 Inventory 80 Cash 80 Cash 2200 Jan. 20 v Sales Revenue 2200 Jan. 20 Cost of Goods Sold 1140 Inventory 1140 Jan. 28 Salaries and Wages Expen: 160 Jan. 28 TSalaries and Wages Expen: 160 Salaries and Wages Payabl 56 Cash 216 Jan. 28 Cash 3300 Accounts Receivable 3300 Jan. 31 v Accounts Payable 4380 Cash 4380 Jan. 31 Dividends 750 Cash 750 (52) Post the January 2015 transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Date Explanation Debit Credit Balance Balance Accounts Receivable Date Explanation Debit Credit Balance Balance Inventory Date Explanation Debit Credit Balance Supplies Date Explanation Debit Credit Balance Balance Prepaid Insurance Date Explanation Debit Credit Balance Balance Debit Credit Balance Equipment Date Explanation Balance Accumulated Depreciation Equipment Date Explanation Debit Credit Balance Balance Website Date Explanation Debit Credit Balance Balance Accounts Payable Date Explanation Debit Credit Balance v Balance Salaries and Wages Payable Date Explanation Debit Credit Balance Balance Interest Payable Date Explanation Debit Credit Balance Balance Unearned Service Revenue Date Explanation Balance Debit Credit Balance Notes Payable Date Explanation Debit Credit Balance v Balance Common Stock Date Explanation Debit Credit Balance Balance Retained Earnings Date Explanation Debit Credit Balance Balance Dividends Date Explanation Debit Credit Balance Sales Revenue Date Explanation Debit Credit Balance Cost of Goods Sold Date Explanation Debit Credit Balance Salaries and Wages Expense Date Explanation Debit Credit Balance Freight-out Date Explanation Debit Credit Balance
