Question

Journal entries.

If you chose to obtain a franchise, you receive the bill from the franchisor. You must pay the fee for the first two years. The franchise agreement runs from Aug. 1, 20X3 through July 31, 20XS. The cost to you for two years is If the amount is zero, no entry is required You pay the deposits to the telephone company and the utility company Aug. 1 #1-8 0 Aug. 1

Answer 1

Date/entry	journal	debit	credit
aug 1	phone	150
	utilities	200
	to cash		350
	(being paid phone deposit and utilities)
aug 1	advertisement	706
	to cash		706
	(being paid for advertisement)
aug 1	ice cream(8000)	2400
	novelties(1150)	575
	to purchase account		2975
	(being received stock of ice cream and novelties)
aug 5	sale	376.3
	to ice cream(1036)		310.8
	to novelties(131)		65.5
	(being sale made)
aug 10	purchase	2975
	to discount received		29.75
	tocash		2945.25
	(being paid purchase bill and received discount)
aug 11	there is no purchase of staples so no entry is required
aug 12	sale	752.6
	to ice cream(2072)		621.6
	to novelties(262)		131
	(being made sale in second week)
aug15	ice cream(3108)	932
	novelties(393)	197
	to purchase		1,129
	(being shipment received of products)
aug 16	office supplies	83
	to R supplier		83
	(being purchase some additional office supplies)
aug 19	sale	941
	to ice cream(2590)		777
	to novelties(328)		164
	(being made sale of third week)
aug 22	cash	66
	to phone		66
	(being paid bill of telephone)
aug 25	ice cream(2590)	777
	novelties(328)	164
	to purchase		941
	(being received third shipment)
aug 25	purchase a/c	1129
	to cash		1117.71
	to discount receive		11.29
	(being paid bill received shipment on 15 aug and recieve discount )
aug 26	sale	1129
	to ice cream(3108)		932.5
	to novelties(393)		196.5
	(being sale made of fourth week)
aug 26	ice cream(3108)	932.4
	novelties(393)	196.5
	to purchase		1128.9
	(being received 4th shipment)
aug 26	cash	4612.271
	accrue tax employees paycheck	1581.65
	accrue tax employers payroll	789.079
	to salary and wages		6983
	(being paid salary and wage and deduct all tax and paid in september)
aug 31	sale	564.7
	to ice cream(1554)		466.2
	to novelties(197)		98.5
	(being record sale of last 5 days of august)

we sale the stock on the basis of fifo method.