Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirement-1: Journalize the following transactions. Note: You do not need to consider any account for Interest payable and wages payable, as those are being paid

image text in transcribed
Requirement-1: Journalize the following transactions. Note: You do not need to consider any account for Interest payable and wages payable, as those are being paid on schedule. b 1: They paid $3,000 for rent. Feb 2: Distributed $30,000 dividends to the owners. Feb 3: They received $2,000 from credit card companies. Feb 3: They purchased $25,000 inventory: $2,000 in cash and the rest on account. Feb 7: They had $21,000 sales; 70% in cash, 10% on customers account (A/R), and 20% on credit card (CC/R). Those sales cost them using $3,500 of the inventory. Feb 8: They received a utility bill of $500 which was due in three weeks. (U/P). Feb 9: They received $3,000 from the customers who were billed before. Feb 10: They paid $3,000 for A/P. Feb 14: They had $18,000 sales; 60% in cash, 20% on customers account (A/R), and 20% on credit card (CC/R). Those sales cost them using $3,000 of the inventory. Feb 14: They paid $6,000 for wages. Feb 15: Owners invested additional $50,000 in the business. Feb 16: They purchased $3,000 inventory in cash. Feb 23: They had sales of $20,000; $12,000 in cash and the rest on customers' account. Those sales cost them using $3,000 of the inventory. Feb 24: They paid $500 for the utility bill dated Feb 8. Feb 25: They paid $2,000 for A/P. Feb 29: They had $48,000 sales; 70% in cash, 10% on customers account (A/R), and 20% on credit card (CC/R). Those sales cost them using $8,000 of the inventory. Feb 29: Distributed $30,000 dividends to owners. Feb 29: They paid $3,500 for their loan (N/P). Remember only $2,000 of payments goes against the principal of the loan. Feb 29: They purchased $2,000 supplies on account. in rrran naner and do not submit them with

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Managerial Accounting For Decision Making

Authors: Seohee Park

1st Edition

B08HCQCN2G

More Books

Students also viewed these Accounting questions

Question

The company openly shares plans and information with employees.

Answered: 1 week ago