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Please, help me to solve this problem. I need General Journal and worksheet. Kate Corporation operates a store that sells uniforms. The following are the
Please, help me to solve this problem.
I need General Journal and worksheet.
Kate Corporation operates a store that sells uniforms. The following are the transactions that occurred during the first quarter of operations- Jan. 1 to Mar. 31, 2014. Jan. Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Mar. Mar. Mar. Mar. Mar. Mar. 1 Kate issues 20,000 shares of $2 par value common stock with an issuing price of $10 per share. 2 Purchased furniture and fixtures from Acme Furniture for $11,520 cash. 4 Purchased $1,800 of office supplies for cash. 15 Paid $21,600 in advance for one year's rent on the store building. The rent begins with Jan 15. The company counts January for half a month. 31 Paid salaries to employees for the first month, $3,600. 1 Purchased $78,000 of uniforms inventory on account from the Birdwell Uniforms Manufacturing Company. 1 Borrowed $64,000 from a local bank and signed two notes. The first note of $18,000 requires payment of principal in six months with annual interest rate at 5%. The second note of $46,000 requires the payment of principal in two years and annual interest payment with annual interest rate at 8%. 6 Sold uniforms on account to St. Jude's School for $7,200. Cost of the uniforms sold is $4,800. 9 Paid Birdwell Uniforms Manufacturing Company $50,400 for the purchase on Feb. 1. 20 Sold uniforms to a chemical factory for $79,200 cash. Cost of the uniforms sold is $47,520. 23 Purchased $12,000 of uniforms inventory on account from the Birdwell Uniforms Manufacturing Company. 28 Paid salaries to employees for the month of February, $4,200. 1 Sold uniforms to the football team of Robert Lee High School, and accepted a $12,000, three-month, note receivable with annual interest rate at 6%. Cost of the uniforms sold is $9,600. 1 Subleased a portion of the building to a jewelry store. Received $3,600 in advance for three months' rent beginning on Mar. 1. 3 Some uniforms were returned by the chemical factory which made a purchase on Feb. 20. The selling price and cost of the returned uniforms is $7,200 and 4,320, respectively. Cash of $7,200 is returned to the customer. 23 Paid Birdwell Uniforms Manufacturing Company $14,400 for the purchases in Feb. 25 Received $4,800 cash from St. Jude's School. 30 The corporation announced and paid its shareholders cash dividends of $3,000. Requirements: 1. Analyze the transactions and record journal entries in General Journal. 2. Record adjusting entries in General Journal and post to the general ledger accounts. 1 Additional information: a. At the end of March, $1,000 of supplies remained. b. The furniture and fixtures have a useful life of six years and will be worthless at the end of their useful life. c. Salaries for the month of March are $4,800, and will be paid on April 3, 2014. d. The company's management estimated that of the $2,400 remaining on account from St. Jude's School, only $2,100 would ultimately be collected. e. Income tax rate applied to the company is 30%. 3. Prepare worksheet 2
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