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Posted on Aug 19, 2024

Step 4: Post entries to t accounts. Post the following journal enties to t accounts. The following events occur in July 2014: July 1 You

Step 4: Post entries to t accounts. Post the following journal enties to t accounts.

The following events occur in July 2014:

July 1 You take $15,000 from your personal savings account and buy common stock in Peyton

Approved.

July 1-Purchase $8500 in baking supplies from vendor, on account

July 3 Your parents lend the company $10,000 cash, in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity.

July 7 Pay $3000 toward lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, last months rent was required at time of lease agreement. Lease period is effective July 1^st 2014 through June 30^th, 2015.

July 10 Pay $375 to the county for a business license.

July 11 Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipmentuse misc. exp.).

July 13 You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life.

July 13 Pay $200 for business cards/flyers/posters/ads to use for advertising.

July 14 Pay $300 for miscellaneous (use misc. supplies).

July 15 Hire part-time helper to be paid $12 per hour. Pay periods are the 1^st through the 15^th and 16^th through the end of the month with paydays being the 20^th for the first pay period and the 5^th of the following month for the second pay period. (No entry required on this date; for informational purposes only)

July 30- Received telephone bill for July in amount of $45. Payment is due on August 10^th

July 31 Pay $1,200 for a 12-month insurance policy. Policy effective dates August 1, 2014 through July 31^st, 2015

July 31- Accrue wages earned for employee for period of 16^th through 31st of July

(Wage calculations table is provided for you, below)

Total July bakery sales were $15,000. $5000 of these sales on accounts receivable

August 5- paid employee for period ending 7/31

August 8-Receive payments from customers towards accounts receivable in amount of $3200.

August 10 paid July telephone bill

August 15- Purchase additional baking supplies in amount of $5000 from vendor, on account.

August 15 Accrue wages earned for employee from period of 1^st through 15^th of August

(Wage calculations table provided below)

August 15-Pay rent on bakery space $1500

August 18-Receive payments from customers towards accounts receivable in amount of $1000

August 20- paid $8500 toward baking supplies vendor payable

August 20- pay employee for period ending 8/15

August 22- $300 in misc. supplies purchased

August 31- received telephone bill for August in amount of $45. Payment is due on September 10^th.

August 31- Accrue wages earned for employee for period of August 16^th through August 31^st

(Wage calculations table provided below)

August bakery sales total $20,000. $7,500 of this total on accounts receivable

September 1- paid dividends to self in amount of $3000

September 5-pay employee for period ending 8/31

September 7-Purchase merchandise for resale. See inventory valuation tab for details.

September 8- Receive payments from customers toward accounts receivable in amount of

$4000

September 10- pay August telephone bill

September 11-purchase baking supplies in amount of $ 7,000 from vendor on account.

September 13- Paid on supplies vendor account in amount of $5000

September 15- Accrue employee wages for period of September 1^st through September 15^th

September 15- Pay rent on bakery space $1500

September 15-Record merchandise sales transaction. See inventory valuation tab for details.

September 15-Record impact of sales transaction on COGS and the inventory asset.