Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with The Balance Sheet. The following transactions occurred during the month of October. Oct. 8 Madison cashes her U . S .
Please help me with The Balance Sheet. The following transactions occurred during the month of October.
Oct. Madison cashes her US Savings Bonds and receives $ which she deposits in her personal bank account.
She opens a bank account under the name Sweet Treats and transfers $ from her personal account to the new account.
Madison pays $ for advertising. Check
She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $ cash. Check
Madison purchases a food processor for $ Check
Madison realizes that her initial cash investment is not enough. Her grandmother lends her $ cash, for which Madison signs a note payable in the name of the business. Madison deposits the money in the business bank account. The note will be repaid in months at interest.
She buys more baking equipment for $ cash. Check
She teaches her first class and collects $ cash.
Madison withdraws $ from the business for personal expenditures. Check
Madison pays $ for a oneyear insurance policy that will expire on November of the next year. Check
A friend of Madison's asked her to teach a class at the neighborhood school, Newbury Elementary School. Madison agreed and taught a group of firstgrade students how to make gingerbread cookies. The next day, Madison prepared an invoice for $ and left it with the school principal. The principal said that he will pass the invoice along to the head office, and it will be paid sometime in November.
As of October the following adjusting entry data is available.
A count reveals that $ of baking supplies were used during October.
Madison estimates that her baking equipment depreciates $ per month.
Madison has decided to accrue the interest each month just to be sure her books correctly reflect what needs to be repaid. She will accrue a full month's interest in Oclober, since she wouldn't even be off the ground without her grandma's help.
Madison had a friend assist her with the Newbury Elementary School class. She decides to hire her friend as an employee. She owes her $ for the October class, that she will pay on November
At the beginning of November, Madison decides to expand her business by selling fine European mixers. The owner of Batter Biender Supply Co has approached Madison to become the exclusive distrbutor of these fine mixers in her state. The current cost of a mixer is $ and Madison plans to sell each mixer for $ Each appliance has a serial number and can be easily idenutifed. Madison uses the perpetual inventory system to account for these fine mixers. She also decides to start using special joumals and subsidiary ledgers to help keep track of her new customers and vendors, sales and purchases, and cash flows. Hint: Refer to Chapter to calculate the cost of inventory.
The folowing transacions occurred during the month of November.
Nov Boughl five mixers on account from Batter Blender Supply Co for $ terms N
Paid $ freight on the November purchase. Check
Bought four mixers on account from Batter Blender Supply Co for $ terms n
Madison is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $ cash in Sweet Treals.
Paid $ freight on the November purchase. Check
Madison issued a check to her assistant for all the help at the elementary school on October Recall this amount was accrued at the end of October. Check
Paid a $ cell phone bill Hint: Use Utilties Expense Check
Paid Batter Blender the amount due from the November purchase. Check
Collected $ from the October transaction with Newbury Elementary School.
Three mixers are sold to Peter's Pastries on account for $ terms n Invoice Hint: You must record both the revenue and expense components on all sales transactions.
Sold three mixers for $ cash.
Paid Batter Blender the amount due from the November purchase. Check
Paid her assistant for the last two weeks of November in the amount of $ Check Madison withdrew $ cash for personal use. check november th adjusting ENTries. account of baking supplies reveals that none were used in November. another month's worth of depreciation needs to be recorded on the baking equipment bought in October. One month's worth of insurance has expired. the Madison records another month of ACCrued interest on her grandma's loan
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started