Halogen Laminated Products Company began business on January 1,
2018. During January, the following transactions
occurred:
Jan. | 1 | Issued common stock in exchange for $119,000 cash. | ||
2 | Purchased inventory on account for $26,000 (the perpetual inventory system is used). | |||
4 | Paid an insurance company $1,320 for a one-year insurance policy. | |||
10 | Sold merchandise on account for $11,100. The cost of the merchandise was $6,100. | |||
15 | Borrowed $21,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. | |||
20 | Paid employees $5,100 salaries and wages for the first half of the month. | |||
22 | Sold merchandise for $9,100 cash. The cost of the merchandise was $5,100. | |||
24 | Paid $14,100 to suppliers for the merchandise purchased on January 2. | |||
26 | Collected $5,550 on account from customers. | |||
28 | Paid $1,100 to the local utility company for January gas and electricity. | |||
30 | Paid $3,100 rent for the building. $1,550 was for January rent, and $1,550 for February rent. |
Required:
1. Prepare general journal entries to record each
transaction.
2. Post the transactions into the appropriate
T-accounts.
3. Prepare an unadjusted trial balance as of
January 30, 2018.
1. General journal entries to record each transaction is:
Date | Particulars | L.F | Amount ($) | Amount ($) |
Jan-01 | Cash | 119,000 | ||
Common Stock | 119,000 | |||
(For common stock issued) | ||||
Jan-02 | Merchandise Inventory | 26,000 | ||
Account Payable | 26,000 | |||
(For inventory purchased) | ||||
Jan-04 | Prepaid insurance | 1,320 | ||
Cash | 1,320 | |||
(For paid for 1 year insurance) | ||||
Jan-10 | Account Receivable | 11,100 | ||
Sales Revenue | 11,100 | |||
(for merchandise sold) | ||||
Jan-10 | Cost of goods sold | 6,100 | ||
Merchandise Inventory | 6,100 | |||
(For cost of goods sold recorded) | ||||
Jan-15 | Cash | 21,000 | ||
Note Payable | 21,000 | |||
(for money borrowed from bank) | ||||
Jan-20 | Salaries and Wages Expense | 5,100 | ||
Cash | 5,100 | |||
(For paid for salary expenses) | ||||
Jan-22 | Cash | 9,100 | ||
Sales Revenue | 9,100 | |||
(for merchandise sold) | ||||
Jan-22 | Cost of goods sold | 5,100 | ||
Merchandise Inventory | 5,100 | |||
(For cost of goods sold recorded) | ||||
Jan-24 | Account Payable | 14,100 | ||
Cash | 14,100 | |||
(For cash paid to suppliers) | ||||
Jan-26 | Cash | 5,550 | ||
Account Receivable | 5,550 | |||
(For cash received) | ||||
Jan-28 | Gas and Electricity Expense | 1,100 | ||
Cash | 1,100 | |||
(For cash paid for gas and electricity) | ||||
Jan-30 | Rent Expense | 1,550 | ||
Prepaid rent | 1,550 | |||
Cash | 3,100 | |||
(For cash paid for Jan and Feb Rent) |
2. Transactions into the appropriate T-accounts are:
Cash | |||
Particulars | Amount | Particulars | Amount |
Jan-01 | 119,000 | Jan-04 | 1,320 |
Jan-15 | 21,000 | Jan-20 | 5,100 |
Jan-22 | 9,100 | Jan-24 | 14,100 |
Jan-26 | 5,550 | Jan-28 | 1,100 |
Jan-30 | 3,100 | ||
154,650 | 24,720 | ||
Closing Balance | 129,930 | ||
Merchandise Inventory | |||
Particulars | Amount | Particulars | Amount |
Jan-02 | 26,000 | Jan-10 | 6,100 |
Jan-22 | 5,100 | ||
26,000 | 11,200 | ||
Closing Balance | 14,800 | ||
Prepaid insurance | |||
Particulars | Amount | Particulars | Amount |
Jan-04 | 1,320 | ||
1,320 | 0 | ||
Closing Balance | 1,320 | ||
Account Receivable | |||
Particulars | Amount | Particulars | Amount |
Jan-10 | 11,100 | Jan-26 | 5,550 |
11,100 | 5,550 | ||
Closing Balance | 5,550 | ||
Prepaid rent | |||
Particulars | Amount | Particulars | Amount |
Jan-30 | 1,550 | ||
Closing Balance | 1,550 | ||
Accounts Payable | |||
Particulars | Amount | Particulars | Amount |
Jan-24 | 14,100 | Jan-02 | 26,000 |
14,100 | 26,000 | ||
Closing Balance | 11,900 | ||
Common Stock | |||
Particulars | Amount | Particulars | Amount |
Jan-01 | 119,000 | ||
Closing Balance | 119,000 | ||
Sales Revenue | |||
Particulars | Amount | Particulars | Amount |
Jan-10 | 11,100 | ||
Jan-22 | 9,100 | ||
20,200 | |||
Closing Balance | 20,200 | ||
Cost of goods sold | |||
Particulars | Amount | Particulars | Amount |
Jan-10 | 6,100 | ||
Jan-22 | 5,100 | ||
Closing Balance | 11,200 | ||
Note Payable | |||
Particulars | Amount | Particulars | Amount |
Jan-15 | 21,000 | ||
Closing Balance | 21,000 | ||
Salaries and Wages Expense | |||
Particulars | Amount | Particulars | Amount |
Jan-20 | 5,100 | ||
Closing Balance | 5,100 | ||
Gas and Electricity Expense | |||
Particulars | Amount | Particulars | Amount |
Jan-28 | 1,100 | ||
Closing Balance | 1,100 | ||
Rent Expense | |||
Particulars | Amount | Particulars | Amount |
Jan-30 | 1,550 | ||
Closing Balance | 1,550 |
3. Unadjusted Trial Balance
Halogen Laminated Products Company | ||
Trial Balance | ||
January 31, 2018 | ||
Debit | Credit | |
Cash | 129,930 | |
Merchandise Inventory | 14,800 | |
Account Receivable | 5,550 | |
Prepaid insurance | 1,320 | |
Prepaid rent | 1,550 | |
Accounts Payable | 11,900 | |
Note Payable | 21,000 | |
Common Stock | 119,000 | |
Sales Revenue | 20,200 | |
Cost of goods sold | 11,200 | |
Salaries and Wages Expense | 5,100 | |
Gas and Electricity Expense | 1,100 | |
Rent Expense | 1,550 | |
Total | 172,100 | 172,100 |
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