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Please help me with the general entry and balance sheet. Thanks! Important things to know: The name of the company is Hose-Jay and it went
Please help me with the general entry and balance sheet. Thanks!
Important things to know: The name of the company is Hose-Jay and it went into business on August 1, 2004. - Hose-Jay employs straight-line depreciation of its buildings. Assume 0 salvage value and a 5 15.2 - 2015 year useful life of all buildings. 8% interest accrues monthly - do NOT pay it (Interest Payable). Hose-Jay is a retailer that starts with one employee. No income taxes...what a wonderful world that would be! August 2004 Transactions By Day: Day 1 Transaction Issue 2,000 shares of common stock (no par value) for $10 per share in cash. 1 Purchase 100 units ($20 per unit) of inventory with cash. 1 Pay cash for a 3 month insurance policy for a total of $600. 1 Buy a building for $4,000. Borrow the money from a bank (use Loans or Notes Payable) 8 Collect $600 cash for 20 units that will not be delivered until September 13. 9 Sell 5 units for $120 (on credit). 14 Pay employee $15 per hour for the 40 hours he worked. 15 Purchase 200 units ($20 per unit) of inventory on account (use Accounts Payable ONLY when you don't pay for INVENTORY!). 26 Sell 75 units for $1,800 (half in cash, half on credit). 31 Get a $200 utilities bill for August. Do not pay it (Utilitics Payable). 31 Employee hands in time-sheet for 30 hours worked (since last pay day). You owe him $15 for each hour. Do not pay him (Salaries Payable). 31 Don't forget to deal with insurance, interest and depreciation expenseStep by Step Solution
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