Question

Problem 1: Prepare journal entries to record the following transactions of Daisy King Corp in the month of June. (25 points) 1. Purchased $8,200 of inventory on account. 2. Paid monthly salaries by cash, $9200. 3. Recorded sales for the period is: Cash sale: $7,100; credit sale: $5,300. Cost of those sales is $9000. The company uses perpetual inventory system. 4. Paid for inventory purchased in event (1). 5. Received cash payment of $6,300 from customer on goods to be delivered in August. 6. Paid two month rent in advance of $2000. 7. At the end of the month, adjust the monthly rent for month of June.

Answer 1

Transaction Credit Debit 8,200 General Journal Inventory Accounts Payable Salaries Expense $ 8,200 $ 9,200 N Cash 9,200 w 7,100 5,300 12,400 9,000 9,000 8,200 Cash Accounts Receivable Sales Revenue Cost of Goods Sold Inventory Accounts Payable Cash Cash Accounts Receivable Prepaid Rent Cash Rent Expense ($2,000 / 2) Prepaid Rent 8,200 6,300 6,300 2,000 2,000 1,000 1,000