Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.) Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.) Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February, the first month of operations a. Received four shareholders' contributions totaling $29,100 cash to form the corporation issued 400 shares of $0.10 par value common stock b. Paid three months' rent for the store at $1,700 per month (recorded as prepaid expenses). c. Purchased and received candy for $5,600 on account, due in 60 days, d. Purchased supplies for $1,330 cash. e Negotiated and signed a two-year $20,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,000 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper for $430 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,200; $2,640 was in cash and the rest on accounts receivable. The cost of the candy sold was $1,400. I. Made a $560 payment on accounts payable. J. Incurred and paid employee wages of $1100. k. Collected accounts receivable of $105 from customers. 1. Made a repair to one of the display cases for $125 cash. m. Made cash sales of $2,700 during the rest of the month. The cost of the candy sold was $1.510. Required: 1 & 2. Record in the T-accounts the effects of each transaction for Kaylee's Sweets in February, referencing each transaction in the accounts with the transaction letter. Accounts Receivable Cash Bog bal Beg bal End bal 0 End bal Inventory Supplies Beg bal Beg bal 0 End bal 0 End bal Equipment Prepaid Expenses .. In. SBB MAU Prepaid Expenses Equipment Beg bal Beg bal End, bal End bal Furniture and Fixtures Accounts Payable Beg bal Beg bal 0 End bal End, bal Notes Payable Common Stock Beg bal Beg bal 0 0 End, bal End bal Sales Revenue Additional Paid-in Capital Beg bal Beg bal Sales Revenue Additional Paid-in Capital Beg bal Beg bal 0 End bal End bal Repair Expense Cost of Goods Sold Beg. bal Beg bal End bal 0 End bal Wage Expense Advertising Expense Beg bal Beg. bal 0 0 End bal End bal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

14th Edition

1260247821, 978-1260247824

Students also viewed these Accounting questions