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 $100,000 cash. 2 Purchased Inventory on account for $35,000 (the perpetual inventory system is used). 4 Paid an insurance company $2,400 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 10 Sold merchandise on account for $12,000. The cost of the merchandise was $7,000 15 Borrowed $30,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. 20 Paid employees $6,000 salaries for the first half of the month 22 Sold merchandise for $10,000 cash. The cost of the merchandise was $6,000 24 Paid $15,000 to suppliers for the merchandise purchased on January 2. 26 Collected $6,000 on account fron customers. 28 Paid $1,000 to the local utility company for January gas and electricity. 30 Paid $4,000 rent for the building. $2,000 was for January rent, and $2,000 for February rent. Prepaid rent and rent expense were debited for their appropriate anounts. es Required: 1. Prepare general journal entries to record each transaction 2. Post the transactions into the appropriate T-accounts 3. Prepare an unadjusted trial balance as of January 30, 2021 Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3

Answer 1

Credit Requirement (1) Date Account title and Explanation Jan.1 Cash Common stock [To record issuance of common stock] Debit 100,000 $ $ 100,000 $ 35,000 Jan.2 Inventory Accounts payable [To record purchase of inventory on account] $ 35,000 $ 2,400 Jan.4 Prepaid insurance Cash [To record cash paid in advance for insurance] $ 2,400 $ 12,000 Jan. 10 Accounts receivable Sales revenue [To record sales on account] $ 12,000 $ 7,000 Cost of goods sold Inventory [To record cost of goods sold] $ 7,000 $ 30,000 Jan.15 Cash Notes payable [To record borrowed from bank] $ 30,000 $ 6,000 Jan.20 Salaries Expense Cash [To record payment of salaries and wages] $ 6,000 $ 10,000 Jan.22 Cash Sales revenue [To record sales on account] $ 10,000 $ 6,000 Cost of goods sold Inventory [To record cost of goods sold] $ 6,000 $ 15,000 Jan.24 Accounts payable Cash [To record cash paid for accounts payable] $ 15,000 $ 6,000 Jan. 26 Cash Accounts receivable [To record cash collected from customers] $ 6,000 $ 1,000 Jan.28 Utilities expense Cash [To record payment of utilities] $ 1,000 Jan.30 Rent expense Prepaid rent Cash $ $ 2,000 2,000 $ 4,000 [To Record Rent payment]

Beg Bal Jan. 10 Accounts Receivable $ $ 12,000 $ 6,000 Jan.26 Requirement (2) Cash Beg Bal $ Jan. 1 $100,000 $ Jan.15 $ 30,000 $ Jan.26 $ 6,000 $ $ $ End Bal $ 107,600 2,400 Jan. 4 6,000 Jan.20 1,000 Jan.28 15,000 Jan.24 4,000 Jan.30 End Bal $ 6,000 Beg Bal Jan.2 Inventory $ $ 35,000 $ $ 10,000 $ Prepaid Insurance Beg Bal $ Jan.4 $ 2,400 7,000 Jan. 10 6,000 Jan.22 Jan.22 End Bal $ 32,000 End Bal $ 2,400 Accounts Payable Jan.30 Prepaid Rent $ 2,000 Beg Bal Jan. 24 $ 15,000 $ 35,000 Jan.2 End Bal $ 2,000 End Bal $ 20,000 Beg Bal Notes Payable $ $ 30,000 Jan.15 Beg Bal Common Stock $ $ 100,000 Jan. 1 End Bal $ 30,000 End Bal $100,000 Beg Bal Sales Revenue $ $ 12,000 Jan.10 $ 10,000 Jan.22 Cost of goods sold Beg Bal $ Jan. 10 $ 7,000 Jan.22 $ 6,000 End Bal $ 22,000 End Bal $ 13,000 Beg Bal Jan.20 Salaries Expense $ $ 6,000 Beg Bal Jan.30 Rent Expense $ $ 2,000 End Bal $ 6,000 End Bal $ 2,000 Beg Bal Jan.28 Utilities Expense $ $ 1,000 End Bal $ 1,000

Credit Requirement (3) Halogen Laminated Products Company Unadjusted Trial Balance January 28,2021 Account Title Debit Cash $ 107,600 Accounts Receivable $ 6,000 Inventory $ 32,000 Prepaid Insurance $ 2,400 Prepaid Rent $ 2,000 Accounts Payable Notes Payable Common Stock Service Revenue Cost of goods sold $ 13,000 Salaries Expense $ 6,000 Rent Expense $ 2,000 Utilities Expense $ 1,000 $ 20,000 $ 30,000 $100,000 $ 22,000 Totals $ 172,000 $172,000 Note : Do Comment For Any Further Assistance