Question
Transaction: 1) October 1, 2016: Opened a bank account for Craft Fair rentals with $100. 2) October 1, 2016: Took out a loan $14,000 from
Transaction: 1) October 1, 2016: Opened a bank account for Craft Fair rentals with $100.
2) October 1, 2016: Took out a loan $14,000 from Best Bank and deposited it into the account to pay for expenses. Record as Best Bank Loan payable.
3) October 1, 2016: Bought 20 folding tables from Staples for $1,500 on account. Expect the tables to last 3 years with no disposal value
4) October 1, 2016: Bought 40 chairs from Staples for $1,200 on account. Expect the chairs to last 2 years with no disposal value
5) October 2, 2016: bought 40 table cloths for $800 from Sears on account. Expect to last only 1 season, so expense.
6) October 2, 2016: bought cleaning supplies for $97.00 from Super Store. Paid cash. Will use up within the year.
7) October 5, 2016: Purchased a cash register for $2,500 from ABC Business Machines. It is expected to last 5 years.
8) October 1, 2016: paid $6,000 for 3 months rental, (October 1 to December 31, 2017) to OK Hall rentals.
9) October 31, 2016: Best Bank charge, interest on loan $33.33, other bank charges $7.50
10) October 31, 2016: Received $4,800 for the month for table rentals. All paid in cash.
11) October 31, 2016: Paid the Staples account $2,200.
12) October 31, 2016: Mr. Bro drew $3,000 out for his living expenses.
13) November 5, 2016: Paid Sears account $800.00 cash for table cloths. (see #5)
14) November 15, 2016: Paid The Fix-it Man $79.00 cash for repairs on the tables.
15) November 30, 2016: Sales invoice 1002 for table rentals of $9,000. $5,000 was paid in cash, balance on account.
16) November 30, 2016: Interest on loan, $33.33 and bank charges $7.50
17) November 30, 2016: Mr. Bro drew $3,000 out for his living expenses.
18) December 14, 2016: Received $4,000 cash for the balance of invoice #1002
19) December 15, 2016: Sales invoice 1003 for table rentals of $7,000. $5,000 in cash, balance on account.
20) December 29, 2016: Sales invoice 1004 for table rentals of $3,000, $1,000 in cash, balance on account.
21) December 30, 2016: Received $2,000 cash for payment of invoice 1003. (see # 20)
22) December 30, 2016: The Fix-it Man charged $58.00 for repairs. Will be paid in January.
23) December 31, 2016: Best Bank interest on loan of $33.33 and bank charges of $7.50.
24) December 31, 2016: Mr. Bro drew $3,000 out for his living expenses.
25) December 31, 2016: Paid $7,000 on the loan owing to Best Bank.
December 31, 2016: Computed amortization expense and accumulated amortization of $500 for the tables, $600 for the chairs and $500 for the cash registrar.
Q1:Prepare the journal entries to record the transactions.
a)Post the journal entries to a T-account
b) Prepare the trial balance
c) Prepare the income statement of the owner's equity for three months (Oct-December)
d) Prepare the balance sheet as of Dec. 31
e) Was the fall work successful? Should it continue in the fall 2017? Give reasons
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