Question

The following transactions occurred at the Daisy King Ice Cream Company. 1. Started business by Issuing 10,000 shares of common stock for $35,000. 2. Leased a building for three years at $650 per month and paid six months' rent in advance. 3. Purchased equipment for $6,900, signing a two-year, 12% note. 4. Purchased $3,300 of supplies on account. 5. Recorded cash sales of $2,300 for the first week. 6. Paid weekly salaries, $1,070. 7. Paid for supplies purchased in item (4). 8. Recorded depreciation on equipment, $150. Required: Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 Started business by issuing 10,000 shares of common stock for $35,000. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal
please complete all 8

Answer 1

Sl. No. Credit Journal Entries Account Title and Explanation Cash Common Stock (To record issue of 10,000 common stock) Debit 35,000 $ $ 35,000 $ 3,900 ($ 650 * 6 Months) Advance Rent Cash (To record lease of building) $ 3,900 3 $ 6,900 Equipment Note Payable (To record purchase of equipment for note payable) $ 6,900 $ 3,300 Supplies Accounts Payable (To record purchase of supplies on account) $ 3,300 5 $ 2,300 Cash Sales Revenue (To record cash sales) $ 2,300 $ 1,070 Salaries expense Cash (To record payment of weekly salaries) $ 1,070 7 $ 3,300 Accounts Payable Cash (To record payment to vendor for supplies) $ 3,300 150 Depreciation Expense Accumulated Depreciation (To record depreciation on equipment) $ 150