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The following transactions occurred at the Daisy King Ice Cream Company. Started business by issuing 10,000 shares of common stock for $23,000. Signed a franchise
The following transactions occurred at the Daisy King Ice Cream Company.
- Started business by issuing 10,000 shares of common stock for $23,000.
- Signed a franchise agreement to pay royalties of 5% of sales.
- Leased a building for three years at $530 per month and paid six months' rent in advance.
- Purchased equipment for $5,700, paying $2,000 down and signing a two-year, 10% note for the balance.
- Purchased $2,100 of supplies on account.
- Recorded cash sales of $1,100 for the first week.
- Paid weekly salaries and wages, $470.
- Paid for supplies purchased in item (5).
- Paid royalties due on first week's sales.
- Recorded depreciation on equipment, $70.
Required: Prepare journal entries to record each of the transactions listed above
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