Record the Transactions as Journal entries in General From
Aug. 1 Common stock was sold to the managers and outside shareholders. The total amount received was $ 50,000 #1-1 Aug. 1 #1-2 A lease was signed to rent the space needed for your store in the location that you chose. The lease deposit was equal to one month's rent. The deposit is $ 2,500 . The first month's rent is also $ 2,500 You pay both of these amounts now. Aug. 1 You receive the loan you requested in the amount of $ 100,000 The loan is due in two years and 10% annual interest is payable quarterly. #1-3 Aug. 1 You purchase liability and property insurance for the next year. You pay cash of $ 2,400 . The coverage begins today. #1-4 Aug. 1 Office supplies are purchased from Staples on account. Total cost of supplies is $ 300 . Payment is due in ten days. #1-5 Aug. 1 #1-6 All of the store equipment (tables, chairs, freezers, etc.) are purchased from Restaurant Suppy Corporation. The total cost of these items is $ 79,400 . Arctic Blast pays cash for $ 10,000 of these items and charges the rest on account, payable in 45 days. . Aug. 1 #1-7 You purchase all of the office equipment from Office Interiors, Inc. The cost is $ 9,000 You pay cash for all of these items. Aug. 1 #1-8 If you chose to obtain a franchise, you receive the bill from the franchisor. You must pay the fee for the first two years. The franchise agreement runs from Aug. 1, 20X3 through July 31, 20X5. The cost to you for two years is $24,000 If the amount is zero, no entry is required. You pay the deposits to the telephone company and the utility company to get your service turned on. The amounts are as follows: Phone $ 150 Utilities $ 200 Aug. 1 #1-9 Aug. 1 You pay for all of your advertising for the first month of operation. The cost of advertising for the first month is $ 1,034. #1-10 Aug. 1 #1-11 You receive the first shipment of products that you chose to sell that you need to start the business. Several times during the month you will receive enough new inventory to return to this level. Total Total units cost Ice cream 10,000 $ 4,000 Novelties $ You should record ice cream and novelties in separate accounts. Purchases are on account and will get a 1% discount if paid within 10 days. a Use the perpetual net method to record all ice cream & novelty purchases. Aug. 5 #1-12 Operating activities Record sales and cost of sales for the first week of activity. Refer to the assignment for the cost of each unit and refer to your choices of selling prices to record the appropriate amount of revenue. Arctic Blast uses a perpetual (net method) inventory system. Units sold Scoops of ice cream 922 Novelties 0 Aug. 10 #1-13 Paid the amounts due for the inventory received on Aug. 1 in transaction #11. You receive the discount. Use the perpetual net method. Aug. 11 Paid the amount due to Staples from the Aug. 1 purchase. #1-14 Aug. 12 #1-15 Record sales and cost of sales activity for the second week. Units sold Scoops of ice cream 1844 Novelties 0 Aug. 15 #1-16 You receive the second shipment of product to be sold. Total Total units cost Ice cream 2,766 $ 1,106 Novelties $ Aug. 16 #1-17 You purchased some additional office supplies from Supplies R Us. You put these supplies on your acccount and will pay for them in 30 days. The total is $ 83.00 Aug. 19 #1-18 Record sales and cost of sales activity for the third week. Units sold Scoops of ice cream 2305 Novelties 0 Aug. 22 #1-19 The telephone company bills us for telephone service in the middle of each month. Paid the bill for Aug. 1-15 of $ 66.00 Aug. 22 #1-20 You receive the third shipment of product to be sold. Total Total units cost Ice cream 2,305 922 Novelties $ Aug. 25 #1-21 Paid the amounts due for the inventory received on Aug. 15 in transaction #16. You receive the 1% discount. Aug. 26 #1-22 Record sales and cost of sales activity for the fourth week. Units sold Scoops of ice cream 2765 Novelties 0 Aug. 26 #1-23 You receive the fourth shipment of product to be sold. Total Total units cost Ice cream 2,765 1,106.00 Novelties $ Aug. 26 #1-24 You pay the employees their wages and the manager his/her salary for the first month of opearations. The total amount of wages and salaries is 7,983.00 The employer is required to withhold the following from the employees' paychecks: Federal income tax 10% State income tax 5% Social Security tax 6.2%% Medicare 1.45% The employer's payroll taxes are: Social Security tax 6.2% Medicare 1.45% FUTA 0.8% SUTA 2.8% You will accrue these taxes now but will be told to make payment in September Aug. 31 #1-25 Record sales and cost of sales activity for the last five days of August. Units sold Scoops of ice cream 1383 Novelties 0 Aug. 1 Common stock was sold to the managers and outside shareholders. The total amount received was $ 50,000 #1-1 Aug. 1 #1-2 A lease was signed to rent the space needed for your store in the location that you chose. The lease deposit was equal to one month's rent. The deposit is $ 2,500 . The first month's rent is also $ 2,500 You pay both of these amounts now. Aug. 1 You receive the loan you requested in the amount of $ 100,000 The loan is due in two years and 10% annual interest is payable quarterly. #1-3 Aug. 1 You purchase liability and property insurance for the next year. You pay cash of $ 2,400 . The coverage begins today. #1-4 Aug. 1 Office supplies are purchased from Staples on account. Total cost of supplies is $ 300 . Payment is due in ten days. #1-5 Aug. 1 #1-6 All of the store equipment (tables, chairs, freezers, etc.) are purchased from Restaurant Suppy Corporation. The total cost of these items is $ 79,400 . Arctic Blast pays cash for $ 10,000 of these items and charges the rest on account, payable in 45 days. . Aug. 1 #1-7 You purchase all of the office equipment from Office Interiors, Inc. The cost is $ 9,000 You pay cash for all of these items. Aug. 1 #1-8 If you chose to obtain a franchise, you receive the bill from the franchisor. You must pay the fee for the first two years. The franchise agreement runs from Aug. 1, 20X3 through July 31, 20X5. The cost to you for two years is $24,000 If the amount is zero, no entry is required. You pay the deposits to the telephone company and the utility company to get your service turned on. The amounts are as follows: Phone $ 150 Utilities $ 200 Aug. 1 #1-9 Aug. 1 You pay for all of your advertising for the first month of operation. The cost of advertising for the first month is $ 1,034. #1-10 Aug. 1 #1-11 You receive the first shipment of products that you chose to sell that you need to start the business. Several times during the month you will receive enough new inventory to return to this level. Total Total units cost Ice cream 10,000 $ 4,000 Novelties $ You should record ice cream and novelties in separate accounts. Purchases are on account and will get a 1% discount if paid within 10 days. a Use the perpetual net method to record all ice cream & novelty purchases. Aug. 5 #1-12 Operating activities Record sales and cost of sales for the first week of activity. Refer to the assignment for the cost of each unit and refer to your choices of selling prices to record the appropriate amount of revenue. Arctic Blast uses a perpetual (net method) inventory system. Units sold Scoops of ice cream 922 Novelties 0 Aug. 10 #1-13 Paid the amounts due for the inventory received on Aug. 1 in transaction #11. You receive the discount. Use the perpetual net method. Aug. 11 Paid the amount due to Staples from the Aug. 1 purchase. #1-14 Aug. 12 #1-15 Record sales and cost of sales activity for the second week. Units sold Scoops of ice cream 1844 Novelties 0 Aug. 15 #1-16 You receive the second shipment of product to be sold. Total Total units cost Ice cream 2,766 $ 1,106 Novelties $ Aug. 16 #1-17 You purchased some additional office supplies from Supplies R Us. You put these supplies on your acccount and will pay for them in 30 days. The total is $ 83.00 Aug. 19 #1-18 Record sales and cost of sales activity for the third week. Units sold Scoops of ice cream 2305 Novelties 0 Aug. 22 #1-19 The telephone company bills us for telephone service in the middle of each month. Paid the bill for Aug. 1-15 of $ 66.00 Aug. 22 #1-20 You receive the third shipment of product to be sold. Total Total units cost Ice cream 2,305 922 Novelties $ Aug. 25 #1-21 Paid the amounts due for the inventory received on Aug. 15 in transaction #16. You receive the 1% discount. Aug. 26 #1-22 Record sales and cost of sales activity for the fourth week. Units sold Scoops of ice cream 2765 Novelties 0 Aug. 26 #1-23 You receive the fourth shipment of product to be sold. Total Total units cost Ice cream 2,765 1,106.00 Novelties $ Aug. 26 #1-24 You pay the employees their wages and the manager his/her salary for the first month of opearations. The total amount of wages and salaries is 7,983.00 The employer is required to withhold the following from the employees' paychecks: Federal income tax 10% State income tax 5% Social Security tax 6.2%% Medicare 1.45% The employer's payroll taxes are: Social Security tax 6.2% Medicare 1.45% FUTA 0.8% SUTA 2.8% You will accrue these taxes now but will be told to make payment in September Aug. 31 #1-25 Record sales and cost of sales activity for the last five days of August. Units sold Scoops of ice cream 1383 Novelties 0
