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Sean Carter, a sole proprietor, created Juicy Lemonade on December 1 , 2 0 2 2 . Juicy Lemonade is a wholesaler that specializes in
Sean Carter, a sole proprietor, created Juicy Lemonade on December Juicy Lemonade is a wholesaler that specializes in selling organic flavored lemonades to colleges and universities, restaurants, and grocery stores. This merchandising company uses the perpetual inventory system, the gross method, and adjusts its books monthly. The transactions for the month of December are as follows: Sean Carter invested $ cash, a $ computer system, and $ of office equipment into the company. The company paid $ cash for rent for the retail store space for the month of December. The company purchased $ of inventory from Organic Juices Unlimited. The credit terms are The company purchased office supplies for $ cash. The company purchased a delivery vehicle for $ cash. The company purchased a month insurance policy for $ cash. The company purchased $ of inventory from Juice Power. The credit terms are The company sold merchandise to Delaware Technical Community College on credit for $ terms net The merchandise sold had a cost of $ The company purchased inventory from JC Juice for $ cash. The company returned $ of inventory to Juice Power and received full credit. The company sold merchandise to Good Life Eats for $ cash. The merchandise sold had a cost of $ Paid the amount due on the purchase from Organic Juices Unlimited. Good Life Eats discovered they received the wrong flavor, but they decided to keep the merchandise anyway. The company issued a credit memorandum and returned $ cash to Good Life Eats for the error. Delaware Technical Community College paid for the merchandise sold on The company paid the amount due, less the return on the purchase from Juice Power. The owner withdrew $ cash for personal use. Authored by: Dr Evelyn Money Required: Using the chart of accounts provided for you, prepare journal entries for the transactions for the month of December. Post the December transactions using the Taccounts provided for you. Create an unadjusted trial balance. Check Figure: $ Total Debits Once you have verified that your unadjusted trial balance is correct, prepare the following adjusting entries. a A physical count of the Office Supplies account showed that there was $ worth of office supplies on hand. The balance of the Office Supplies account on the unadjusted trial balance is $ b One month's insurance expired on the month insurance policy purchased on December for $ c Depreciation expense on the computer equipment, office equipment, and the vehicle totaled $ for the month of December. d Juicy Lemonade pays their parttime employees on a monthly basis. The employees will receive their paychecks totaling $ on January Post the adjusting entries to the accounts provided. Create an adjusted trial balance. Check Figure: $ Total Debits Once you have verified that your adjusted trial balance is correct, prepare a multiplestep income statement see page in your textbook for guidance a statement of owner's equity see page and a balance sheet see page Check Figure: Net income $ Prepare closing entries. Post the closing entries to the Taccounts provided. Prepare a postclosing trialbalance. Chart of Accounts tableAssetsLiabilities,Cash,Accounts PayableAccounts Receivable,Salaries PayableMerchandise Inventory,,Office Supplies,Capital,Prepaid Insurance,S Carter, CapitalComputer Equipment,S Carter, WithdrawalsOffice Equipment,,Vehicles,Re
Sean Carter, a sole proprietor, created Juicy Lemonade on December Juicy Lemonade is a wholesaler that specializes in selling organic flavored lemonades to colleges and universities, restaurants, and grocery stores. This merchandising company uses the perpetual inventory system, the gross method, and adjusts its books monthly. The transactions for the month of December are as follows:
Sean Carter invested $ cash, a $ computer system, and $ of office equipment into the company.
The company paid $ cash for rent for the retail store space for the month of December.
The company purchased $ of inventory from Organic Juices Unlimited. The credit
terms
are
The company purchased office supplies for $ cash. The company purchased a delivery vehicle for $ cash.
The company purchased a month insurance policy for $ cash.
The company purchased $ of inventory from Juice Power. The credit terms are
The company sold merchandise to Delaware Technical Community College on credit for $ terms net The merchandise sold had a cost of $
The company purchased inventory from JC Juice for $ cash.
The company returned $ of inventory to Juice Power and received full credit.
The company sold merchandise to Good Life Eats for $ cash. The merchandise sold had a cost of $
Paid the amount due on the purchase from Organic Juices Unlimited.
Good Life Eats discovered they received the wrong flavor, but they decided to keep the merchandise anyway. The company issued a credit memorandum and returned $ cash to Good Life Eats for the error.
Delaware Technical Community College paid for the merchandise sold on
The company paid the amount due, less the return on the purchase from Juice Power.
The owner withdrew $ cash for personal use.
Authored by: Dr Evelyn Money
Required:
Using the chart of accounts provided for you, prepare journal entries for the transactions for the month of December.
Post the December transactions using the Taccounts provided for you.
Create an unadjusted trial balance. Check Figure: $ Total Debits
Once you have verified that your unadjusted trial balance is correct, prepare the following adjusting entries.
a A physical count of the Office Supplies account showed that there was $ worth of office supplies on hand. The balance of the Office Supplies account on the unadjusted trial balance is $
b One month's insurance expired on the month insurance policy purchased on December for $
c Depreciation expense on the computer equipment, office equipment, and the vehicle totaled $ for the month of December.
d Juicy Lemonade pays their parttime employees on a monthly basis. The employees will receive their paychecks totaling $ on January
Post the adjusting entries to the accounts provided.
Create an adjusted trial balance. Check Figure: $ Total Debits
Once you have verified that your adjusted trial balance is correct, prepare a multiplestep income statement see page in your textbook for guidance a statement of owner's equity see page and a balance sheet see page Check Figure: Net income $
Prepare closing entries.
Post the closing entries to the Taccounts provided.
Prepare a postclosing trialbalance.
Chart of Accounts
tableAssetsLiabilities,Cash,Accounts PayableAccounts Receivable,Salaries PayableMerchandise Inventory,,Office Supplies,Capital,Prepaid Insurance,S Carter, CapitalComputer Equipment,S Carter, WithdrawalsOffice Equipment,,Vehicles,Re
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