Question

& Comp10-1 (similar to) E Question Help Colin Cameron Appliance-Nantucket has just purchased a franchise from Colin Cameron Appliance (CCA). Click the icon to view the additional information) Following is the chart of accounts for Colin Cameron Appliance-Nantucket. As a new business, all beginning balances are SO. Colin Cameron Appliance-Nantucket completed the following transactions during 2018, its first year of operations: i (Click the icon to view the transactions ) Read the requirements. (Click the icon to view the chart of accounts) Requirement 1. Record the transactions in the general journal. Omit explanations (Record debits first, then credits. Exclude explanations from any journal entries.) a. Received $570,000 cash from owner, D. Baen. Opened a new checking account at Nantucket National Bank and deposited the cash received from the owner Date Accounts Debit Credit (a) Cash 570,000 570,000 Baen, Capital b. Paid $53,000 cash for a CCA franchise

Answer 1

1. In the books of Colin Cameron Appliance : Nantucket:

Transaction / Event	Accounts	Debit	Credit
		$	$
a.	Cash	570,000
	Baen, Capital		570,000
b.	Franchise	53,000
	Cash		53,000
c.	Land	120,000
	Building	410,000
	Cash		80,000
	Notes Payable		450,000
d.	Store Fixtures	120,000
	Cash		120,000
e.	Office Equipment	40,000
	Cash		40,000
f.	Office Supplies	400
	Cash		400
g.	Prepaid Insurance	3,400
	Cash		3,400
h.	Merchandise Inventory	445,000
	Accounts Payable		445,000
i.	Petty Cash	280
	Cash		280
j.	Accounts Receivable	245,000
	Sales Revenue		245,000
j.	Cost of Goods Sold	98,000
	Merchandise Inventory		98,000
k.	Note Receivable	190,000
	Sales Revenue		190,000
k.	Cost of Goods Sold	81,000
	Merchandise Inventory		81,000
l.	Cash	48,500
	Credit Card Expense	1,500
	Sales Revenue		50,000
l.	Cost of Goods Sold	23,000
	Merchandise Inventory		23,000
m.	Cash	245,000
	Accounts Receivable		245,000
n.	Merchandise Inventory	670,000
	Accounts Payable		670,000
o.	Accounts Payable	250,000
	Cash		250,000
p	Cash	370,000
	Sales Revenue		370,000
p.	Cost of Goods Sold	183,000
	Merchandise Inventory		183,000
q.	Cash	204,250
	Note Receivable		190,000
	Interest Revenue		14,250
r.	Note Receivable	210,000
	Sales Revenue		210,000
r.	Cost of Goods Sold	108,000
	Merchandise Inventory		108,000

Contd. :

s.	Accounts Payable	450,000
	Cash		450,000
t.	Accounts Receivable	1,020,000
	Sales Revenue		1,020,000
t.	Cost of Goods Sold	408,000
	Merchandise Inventory		408,000
u.	Cash	710,000
	Accounts Receivable		710,000
v.	Salaries Expense	150,000
	Utilities Expense	14,000
	Cash		164,000
w.	Office Supplies Expense	145
	Cash Short and Over	7
	Petty Cash		152
w.	Petty Cash	152
	Cash		152
x.	Baen, Withdrawals	10,000
	Cash		10,000
y.	Franchise Fee Expense	104,250
	Cash		104,250