Question 1 Not yet answered Marked out of 1.00 Flag question Mary Jane opened her new retail business of selling scented candles called Jasmine Inc., on April 1, 2020 with a cash investment of $20,000. Jasmine Inc. follows the fiscal year starting April 1 and adjusts monthly. The following activities/transactions occurred during the month of April 2020: April 7 Mary Jane invested $20,000 cash to start the business. April 1 Mary Jane paid $12,000 cash for 6-months rent extending from April 1 till September 30, 2020 April 2 Paid $1,800 cash for a 2-year insurance policy, effective April 1, 2020. April 2 Hired 2 salespeople for $450 each one, payable on a biweekly basis every Saturday for the 12 days' work, Monday till Saturday. April 3 paid for furniture through a bank note from NBAD Bank for the amount of $60,000. The note is for 5 years and charges 6% interest. Consider the partial month as a full month). April 4 Jasmine bought 300 candles from Tulip Co for $8 each, FOB Shipping point, terms 3/10-n/30. The responsible party paid $ 60 transportation fees. April 5 Bought $250 worth of supplies from Malik's Bookshop by paying cash. April Sold 120 candles to Forever Bliss Wedding Planners for $13 each, FOB Destination, terms 1/10-n/60. The responsible party paid $10 shipment fees. The cost of each candle was $8. 10 12 total of $30 cash. The cost of each candle was $8. April Mary Jane returned 4 deformed candles to 13 Tulip Co. (Exclude freight charges in your calculation) April Mary Jane paid Tulip Co what it owes. 114 April Mary Jane withdrew $ 700 for her personal 17 use. April Mary Jane Paid $ 900 cash to its 2 17 employees April Mary Jane paid $100 for advertising on 18 Facebook April Forever Bliss returned 5 candles as they 18 were not ordered (Exclude Freight charges in your calculation) April Forever Bliss paid in Full. 19 April Sold 5 candles for $14 each for cash. The 23 cost of each candle was $8. April Mary Jane purchased a used delivery Truck 26 for $6,000 Cash April Bought 200 candles from Tulip Co for $7 26 each, FOB Destination, terms 3/10-n/30. The responsible party paid $15 transportation fee. April Sold 180 candles for $10 each for a private 28 dinner party terms 1/10-n/30, FOB shipping point. The cost of 1 candle is $7. The responsible party paid $20 for the shipment April Mary Jane invested another $7,000 cash in 30 the business A. Journalize the entries on the General Journal of Jasmine Inc. It uses the Perpetual Inventory System. (31%) Consider the following additional information regarding the adjustments necessary at the end of the month. The Furniture is expected to be used for 10 years with no Salvage Value. The Annual depreciation is $6,000 April 30, 2020 is a Thursday, The physical inventory checkup revealed the actual ending inventory is $1500 The supplies on hand at April 30 was worth $100 only. The truck will be depreciated $70 a month. B. Journalize the adjusting entries on April 30, 2020. There are a total of 8 adjusting entries (16%) C. Prepare the necessary Closing entries on April 30, 2020. (10%) D. Prepare Multiple Step Income Statement for the month ended April 30, 2020. (20%) E. Prepare the Classified Balance Sheet at April 30, 2020. (23%)
