Answered step by step
Verified Expert Solution
Question
1 Approved Answer
thought I should send you a list of the transactions and events that happened from December 1 to December 15: Dec. 1: Issued chq. #217
thought I should send you a list of the transactions and events that happened from December 1 to December 15:
Dec. 1: Issued chq. #217 for $4,200 to Ms. Jackson (the music store owner)
for 6 months of rent in advance. Due to a change in circumstances, the monthly rent has increased and must now be paid in 6-month blocks. [debit the whole amount to 'Prepaid Rent'].
Dec. 1: The monthly loan payment is made to the bank. The payment is automatically withdrawn. The payment is comprised of a $200 principal
amount plus the previous month's interest. The previous month's interest amount is $33.
[Debit the interest portion to 'Interest Payable']
Dec. 3: Received 15 copies of her method book from the local printers store. The total cost is $195 and the invoice is due in 30 days.
Dec. 5: Received $92 cash which is for lessons given in November but not paid for until Dec. 5.
Dec. 6: Received cash of $5,250 from students paying in advance for lessons to be provided in December.
Dec. 12: Sold 13 copies of her piano method books to Woodwards music
on account for a total amount of $299; terms, net 30 days.
[Rose will use FIFO to track her inventory of method books. You should set up a FIFO subsidiary inventory schedule (like we did in class) to determine the cost of goods sold for this and later inventory transactions. NOTE: Her Nov. 30 inventory consisted of 9 books that cost $12 each. Use the tab labelled "FIFO Schedule" in the Excel worksheets provided].
Dec. 14: Wrote Chq #218 for $173.25 to the East Vancouver Herald Newspaper Company for a small advertisement that appeared last week. [Debit 'Accounts Payable']
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started