Question

Kaylee James, a a·Received four shareholders b Paid three months' rent for the store at $1,840 per month (recorded as prepaid expenses) totaling $29,500 cash to form the corporation, issued 500 shares of $0.10 par value common stock c Purchased and recelved candy for $6.400 on account, due in 60 deys and signed a two year $14,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to g. Placed a grand opening advertisement L Made a $640 J Incurred and paid in the local paper for $470 cash; the ad ran in the current month h. Made sales on Velentine's Day totaling $3700; $2,560 was in cash and the rest on accounts receivable. The cost of the paynble wages of $1800 e of $155 from customers for $125 cash. m. Made cash sales of $3,200 during the rest of the month. The cost of the candy sold was $2.010 0.62 points Required: Beg bal 125 00 End. bal

Answer 1

T-Accounts: Cash Accounts Receivable Beg. Balance So $5,520 Beg. Balance h. $29,500 $1,330 $14,000 $14,000 $2,660 $470 $155 $640 $3,200 $1,800 c. 1, YI. $125 $885 Prepaid Rent $5,520 $5,520 End. Balance $25,630 End. Balance Supplies Beg. Balance $0 $1,330 Beg. Balance End. Balance $1,330 End. Balance Inventory Furniture and Fixtures Beg. Balance $o $1,900 h. Beg. Balance $6,400 $2,010 m. End. Balance $2,490 End. Balance $10,700

Computer Equipment Accounts Payable $6,400 $5,760 Beg. Balance 0 $640 $0 Beg. Balance $3,300 End. Balance $3,300 End. Balance Note Payable (Bank Loan) Common Stock $0 Beg. Balance $0 Beg. Balance $14,000 $50 $14,000 End. Balance $50 End. Balance Additional Paid-in-Capital - Common Sales Revenue $0 Beg. Balance $0 $3,700 $3,200 $6,900 Beg. Balance h. $29,450 $29,450 End. Balance End. Balance

Cost of Goods sold Advertising Expense Beg. Balance h. Beg. Balance 0 $1,900 $2,010 $3,910 0 $470 End. Balance End. Balance $470 Wages Expense Repair Expense Beg. Balance 0 Beg. Balance 0 $1,800 $125 End. Balance $1,800 End. Balance $125