Veronica starts a business making cheese. She buys milk from neighboring farms and built a creamery to
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| Veronica starts a business making cheese. She buys milk from neighboring farms and built a creamery to make her products. |
| She starts by contributing $10,000 of her own money into the business on January 3, 2019. |
| Then she borrows $400,000 to retrofit an old barn into a creamery and a walk in cooler. The money is directly spent on equipment ($63,252) and to the contractors to build the building ($336,748). The money does not go into the business bank account, as the bank paid for everything directly. The purchases are on February 2, 2019 |
| She buys milk from her neighbor to make her first batch of cheese. She buys it on account for $500 on Febrary 12, 2019 |
| Veronica buys cultures online from dairyconnection.com for $112.23 on February 15, 2019 |
| Veronica buys labels and packaging for $154.32 from Creative Labels of Vermont on February 20, 2019 |
| Veronica pays a friend who does sales $100 to cold call potential customers on February 22, 2019 |
| Her heater breaks on March 1, 2019 and she hires Vermont Heating and Ventilation to fix it for $320.21. She pays at the time of service with her bank account |
| She receives the following bills that have not been paid: |
| A utility bill from Green Mountain Power for $214.24 on March 1, 2019 due April 1, 2019 |
| A utility bill from Comcast for $84.45 on March 1, 2019 due April 1, 2019 |
| A telephone bill from Verizon for $114.24 on March 1, 2019 due April 1, 2019 |
| She has the following invoices that have yet to be paid: |
| An invoice to Provisions for $1144.22 dated March 1, 2019 with 30 day terms |
| An invoice to Food Coop for $155.22 dated March 2, 2019 with 30 day terms |
| She draws $1,000 for living expenses on March 3, 2019 from her bank account |
| At a business meeting, she pays for her own coffee for $2.75 with her Business' Bank Account on March 4, 2019 at Starbucks |
| These auto-withdrawals happened on March 31, 2019: |
| $99 for her squarespace website |
| $15 for quickbooks |
| Her first loan payment on 3/31/19 of $4053.21, of which $453.21 is the interest and the remaining is principal |
Expert Answer:
Based on the information provided here are the journal entries for the transactions January 3 2019 C... View the full answer
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