Question

I need help completing journal entries for the following events

Acct 2400 Project 2- Merchandise Inventory & Sale 2. Following is a list of events that occurred during 2018. a) Jan 6, 2018 - Lawn Pro paid the salaries payable from 2017. b) Jan 14, 2018 - The company acquired an additional $50,000 cash from the issue of common stock c) Jan 17, 2018 - The company paid $900 cash for supplies to be used by the business. d) Jan 21, 2018 - Lawn Pro purchased 25 patio furniture sets for later sale at a cost of $12,120. The patio furniture sets were purchased on account with the terms 2/10, n/30. e) Jan. 29, 2018 - Lawn Pro decided to pay $6,000 of its accounts payable balance from event (d) before the discount period expired, so Lawn Pro first applied the 2% discount to the $6,000 amount so it could reduce its accounts payable balance (note: the actual payment is described in event (1) below). After applying this discount, Lawn Pro's inventory cost was $480 for each item. f) Jan. 29, 2018 - Lawn Pro paid cash to settle parts of its accounts payable balance as described in event (e). 8) Feb. 12, 2018 - The company sold 20 patio furniture sets for a total price of $18,000. Sales of $13,000 were on account, while $5,000 were cash sales. Lawn Pro uses the FIFO Inventory method. h) Feb. 12, 2018 - The cost to Lawn Pro of each product sold in event(s) was $480. 1) Feb. 17, 2018 - The company paid the workers a total of $8,400 in salaries. j) Feb. 28, 2018 - The company sold $36,000 of lawn care services to begin Mar. 1. The services are billed to the customers each month. k) Mar. 1, 2018 - Lawn Pro leased a business van, paying $4,800 for one year's lease in advance. 1) Mar. 4, 2018 - Paid cash to settle additional accounts payable in the amount of $3,780. The payment was made after the discount period expired. m) Mar 11, 2018 - Collected $38,000 of accounts receivable. n) Apr. 9, 2018 - Lawn Pro performed $14,000 worth of lawn care services for a local college: $12,000 was on account and $2,000 was for cash. o) May 1, 2018 - Paid $7,200 for one year's rent on office space in advance. p) May 8, 2018 - Lawn Pro purchased 10 patio furniture sets for later sale at a cost of $500 each. q) May. 17, 2018 - The company paid accounts payable of $1,440, but not within the discount period (the company uses the gross method). r) Jun 1, 2018 - Lawn Pro rented a larger building: paid $6,600 for 12 months' rent in advance. s) Jun 5, 2018 - Lawn Pro purchased 12 patio furniture sets for later sale at a cost of $520 each. t) Jun 12, 2018 - Lawn Pro purchased 15 patio furniture sets for later sale at a cost of $530 each. ) Jun 23, 2018 - The company sold 30 patio furniture sets for a total price of $28,000. Sales of $20,000 were on account, while $8,000 were cash sales. v) Jun 23, 2018 - Record the cost of goods sold related to the sale from event (t) using the perpetual FIFO method. w) Jul 1, 2018 - Made a full refund to a dissatisfied customer who returned a patio furniture set. The sale had been a cash sale for $1,100 with a cost of $520. Record the reversal of revenue. x) Jul 1, 2018 - Made a full refund to a dissatisfied customer who returned a patio furniture set. The sale had been a cash sale for $1,100 with a cost of $520. Record the reversal of cost. Y) Jul. 15, 2018 - Paid employees a total of $11,000 cash for salaries employees' earned during the current period. Page 3 of 13

Answer 1

In the books of Lawn Pro :

Transaction/ Event	Account Titles	Debit	Credit
		$	$
a.	Salaries Payable	1,000
	Cash		1,000
b.	Cash	50,000
	Common Stock		50,000
c.	Supplies	900
	Cash		900
d.	Merchandise Inventory	12,120
	Accounts Payable		12,120
e.	No journal entry needed	0	0
f.	Accounts Payable	6,000
	Merchandise Inventory		120
	Cash		5,880
g.	Accounts Receivable	13,000
	Cash	5,000
	Sales Revenue		18,000
h.	Cost of Goods Sold	9,600
	Merchandise Inventory		9,600
i.	Salaries Expense	8,400
	Cash		8,400
j.	Cash	36,000
	Unearned Revenue		36,000
k.	Prepad Rent : Van	4,800
	Cash		4,800
l.	Accounts Payable	3,780
	Cash		3,780
m.	Cash	38,000
	Accounts Receivable		38,000
n.	Cash	2,000
	Accounts Receivable	12,000
	Service Revenue		14,000
o.	Prepaid Rent: Office Space	7,200
	Cash		7,200
p.	Merchandise Inventory	5,000
	Cash		5,000
q.	Accounts Payable	1,440
	Cash		1,440
r.	Prepaid Rent: Building	6,600
	Cash		6,600
s.	Merchandise Inventory	6,240
	Cash		6,240
t.	Merchandise Inventory	7,950
	Cash		7,950
u.	Cash	8,000
	Accounts Receivable	20,000
	Sales Revenue		28,000
v.	Cost of Goods Sold	15,230
	Merchandise Inventory		15,230
w.	Sales Returns and Allowances	1,100
	Cash		1,100
x.	Merchandise Inventory	520
	Cost of Goods Sold		520
y.	Salaries Expense	11,000
	Cash		11,000