Question

Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for $118,000 cash. 2 Purchased inventory on account for $27,000 (the perpetual inventory system is used). 4 Paid an insurance company $1,440 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 10 Sold merchandise on account for $11,200. The cost of the merchandise was $6,200. 15 Borrowed $22,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. 20 Paid employees $5,200 salaries for the first half of the month. 22 Sold merchandise for $9,200 cash. The cost of the merchandise was $5,200. 24 Paid $14,200 to suppliers for the merchandise purchased on January 2. 26 Collected $5,600 on account from customers. 28 Paid $1,000 to the local utility company for January gas and electricity. 30 Paid $3,200 rent for the building. $1,600 was for January rent, and $1,600 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts. Required: Post the transactions into the appropriate T-accounts. Complete this question by entering your answers in the tabs below. Required Post the transactions into the appropriate T-accounts. (Enter the date of the transaction in the column next to the amount.) Cash Accounts Receivable Beg. bal. Beg. bal. End. bal. End. bal. Inventory Prepaid Insurance Beg. bal. Beg. bal. End. bal. End. bal.

Answer 1

Cash					Common stock
Beg. Bal.	$0				Beg. Bal.		$0
Jan.1	$118,000	$1,440	Jan.4				$118,000	Jan.1
Jan.15	$22,000	$5,200	Jan.20		End. Bal.		$118,000
Jan.22	$9,200	$14,200	Jan.24
Jan.26	$5,600	$1,000	Jan.28		Sales revenue
		$3,200	Jan.30		Beg. Bal.		$0
End. Bal.	$129,760						$11,200	Jan.10
							$9,200	Jan.22
Accounts receivable					End. Bal.		$20,400
Beg. Bal.	$0
Jan.10	$11,200	$5,600	Jan.26		Cost of goods sold
End. Bal.	$5,600				Beg. Bal.	$0
					Jan.10	$6,200
Inventory					Jan.22	$5,200
Beg. Bal.	$0				End. Bal.	$11,400
Jan.2	$27,000	$6,200	Jan.10
		$5,200	Jan.22		Salaries expense
End. Bal.	$15,600				Beg. Bal.	$0
					Jan.20	$5,200
Prepaid insurance					End. Bal.	$5,200
Beg. Bal.	$0
Jan.4	$1,440				Utilities expense
End. Bal.	$1,440				Beg. Bal.	$0
					Jan.28	$1,000
Prepaid rent					End. Bal.	$1,000
Beg. Bal.	$0
Jan.30	$1,600				Rent expense
End. Bal.	$1,600				Beg. Bal.	$0
					Jan.30	$1,600
Accounts payable					End. Bal.	$1,600
Beg. Bal.		$0
Jan.24	$14,200	$27,000	Jan.2
End. Bal.		$12,800
Notes payable
Beg. Bal.		$0
		$22,000	Jan.15
End. Bal.		$22,000