Halogen Laminated Products Company began business on January 1,
2021. During January, the following transactions
occurred:
Jan. | 1 | Issued common stock in exchange for $104,000 cash. | ||
2 | Purchased inventory on account for $39,000 (the perpetual inventory system is used). | |||
4 | Paid an insurance company $2,880 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. | |||
10 | Sold merchandise on account for $12,400. The cost of the merchandise was $7,400. | |||
15 | Borrowed $34,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. | |||
20 | Paid employees $6,400 salaries for the first half of the month. | |||
22 | Sold merchandise for $10,400 cash. The cost of the merchandise was $6,400. | |||
24 | Paid $15,400 to suppliers for the merchandise purchased on January 2. | |||
26 | Collected $6,200 on account from customers. | |||
28 | Paid $1,100 to the local utility company for January gas and electricity. | |||
30 | Paid $4,400 rent for the building. $2,200 was for January rent, and $2,200 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts. |
Required:
1. Prepare general journal entries to record each
transaction.
2. Post the transactions into the appropriate
T-accounts.
3. Prepare an unadjusted trial balance as of
January 30, 2021.
Solution 1:-
Dr. | Cr. | ||
Date | Particulars | Amount ($) | Amount ($) |
Jan1 | Cash A/c Dr. | 1,04,000 | |
To Capital A/c | 1,04,000 | ||
(For common stock issued in exchange on cash) | |||
Jan 2 | Inventory A/c Dr. | 39,000 | |
To vendor A/c | 39,000 | ||
(For Inventory purchased on account) | |||
Jan 4 | Prepaid Insurance A/c Dr. | 2,880 | |
To Insurance A/c | 2,880 | ||
(For insurance Premium paid for 1 year) | |||
Jan 10 | Customer Dr. | 12,400 | |
To Sales A/c | 12,400 | ||
(For merchandise sold for $12,400) | |||
Jan15 | Bank A/c Dr. | 34,000 | |
To Note Payable A/c | 34,000 | ||
(for loan borrowed from a local bank) | |||
Jan20 | Salaries A/c Dr. | 6,400 | |
To Cash A/c | 6,400 | ||
(for salaries paid for first half of month) | |||
Jan 22 | Cash A/c Dr. | 10,400 | |
To Sales A/c | 10,400 | ||
(For merchandise sold in cash ) | |||
Jan24 | Vendor A/c Dr. | 15,400 | |
To Cash A/c | 15,400 | ||
(For payment made to supplier) | |||
Jan26 | Cash A/c Dr. | 6,200 | |
To Customers | 6,200 | ||
(for cash received on account) | |||
Jan28 | Gas and Electricity A/c Dr. | 1100 | |
To cash A/c | 1100 | ||
(For amount paid to local utility co. for gas and electricity) | |||
Jan30 | Rent A/c Dr. | 2200 | |
Prepaid Rent A/c Dr. | 2200 | ||
To Cash A/c | 4400 | ||
(for rent paid and prepaid rent paid) |
Solution 2:
Cash A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To capital A/c | 1,04,000 | By Salaries A/c | 6,400 |
To Sales A/c | 10,400 | By Vendor A/c | 15,400 |
To Customer | 6,200 | By Gas and Electricity A/c | 1100 |
To Balance C/D | 93,300 | By rent A/c | 2200 |
By Prepaid Rent A/c | 2200 |
Capital A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Balance C/D | 1,04,000 | By Cash A/c | 1,04,000 |
Inventory A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To vendor A/c | 39,000 | By Balance C/D | 39,000 |
Vendor A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Cash A/c | 15,400 | By Inventory A/c | 39,000 |
To Balance C/D | 23,600 |
Prepaid Insurance A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Insurance A/c | 2,880 | By Balance C/d | 2,880 |
Insurance A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Balance C/d | 2,880 | By Prepaid Insurance A/c | 2,880 |
Customer A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Sales A/c | 12,400 | By Cash A/c | 6,200 |
By Balance c/d | 6,200 |
Sales A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Balance B/d | 22,800 | By Customer A/c | 12,400 |
By Cash A/c | 10,400 |
Gas and Electricity A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Cash A/c | 1,100 | By Balance C/d | 1,100 |
Rent A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Cash A/c | 2200 | By Balance C/D | 2,200 |
Prepaid Rent A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To cash A/c | 2200 | By Balance C/d | 2,200 |
Salaries A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Cash A/c | 6,400 | By Balance C/d | 6,400 |
Bank A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Note Payable A/c | 34,000 | By Balance C/d | 34,000 |
Note Payable A/c
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
To Balance B/d | 34,000 | By Bank A/c | 34,000 |
Solution 3:
Unadjusted Trial Balance
Dr. | Cr. | ||
Particulars | Amount | Particulars | Amount |
Cash A/c | 93,300 | Capital A/c | 1,04,000 |
Inventory A/c | 39,000 | Vendor A/c | 23,600 |
Prepaid Insurance A/c | 2,880 | Sales A/c | 22,800 |
Insurance A/c | 2,880 | Note Payable A/c | 34,000 |
Customers A/c | 6,200 | ||
Gas and Electricity A/c | 1,100 | ||
Rent A/c | 2,200 | ||
Prepaid Rent A/c | 2,200 | ||
Salaries A/c | 6,400 | ||
Bank A/c | 34,000 |
Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:...
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...
Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for $115,000 cash. 2 Purchased inventory on account for $30,000 (the perpetual inventory system is used). Paid an insurance company $1,800 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 10 Sold merchandise on account for $11,500. The cost of the merchandise was $6,500. 15 Borrowed $25,000 from a local bank and signed a note. Principal and interest...
Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for $105,000 cash. 2 Purchased inventory on account for $40,000 (the perpetual inventory system is used). 4 Paid an insurance company $3,000 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 10 Sold merchandise on account for $12,500. The cost of the merchandise was $7,500. 15 Borrowed $35,000 from a local bank and...
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...
Halogen Laminated Products Company began business on January 1, 2018. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for $119,000 cash. 2 Purchased inventory on account for $26,000 (the perpetual inventory system is used). 4 Paid an insurance company $1,320 for a one-year insurance policy. 10 Sold merchandise on account for $11,100. The cost of the merchandise was $6,100. 15 Borrowed $21,000 from a local bank and signed a note. Principal and interest at 10%...
Halogen Laminated Products Company began business on January 1, 2018. 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. 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%...
Question 1 20 pts . Halogen Laminated Products Company began business on January 1, 2019. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for $116,000 cash. 2 Purchased inventory on account for $29,000 (the perpetual inventory system is used). 4. Paid an insurance company $1,680 for a one-year insurance policy. 10 Sold merchandise on account for $11,400. The cost of the merchandise was $6,400. 15 Borrowed $24,000 from a local bank and signed a note....
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...
3. The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $85,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $3,200 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $6,400 in advance rent from another company that is renting a portion of...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 44,000 shares of common stock in exchange for $440,000 in cash. Purchased equipment at a cost of $54,000. $17,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $106,000. The company uses the perpetual inventory system. Credit sales for the month totaled $190,000. The cost...