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% is to be repaid in six months. | |||
20 | Paid employees $6,000 salaries and wages 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 from 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. |
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, 2018.
Requirement 1:
Date | Account title and Explanation | Debit | Credit |
Jan.1 | Cash | $100,000 | |
Common stock | $100,000 | ||
[To record issuance of common stock] | |||
Jan.2 | Inventory | $35,000 | |
Accounts payable | $35,000 | ||
[To record purchase of inventory on account] | |||
Jan.4 | Prepaid insurance | $2,400 | |
Cash | $2,400 | ||
[To record cash paid in advance for insurance] | |||
Jan.10 | Accounts receivable | $12,000 | |
Sales revenue | $12,000 | ||
[To record sales on account] | |||
Cost of goods sold | $7,000 | ||
Inventory | $7,000 | ||
[To record cost of goods sold] | |||
Jan.15 | Cash | $30,000 | |
Notes payable | $30,000 | ||
[To record borrowed from bank] | |||
Jan.20 | Salaries and wages expense | $6,000 | |
Cash | $6,000 | ||
[To record payment of salaries and wages] | |||
Jan.22 | Cash | $10,000 | |
Sales revenue | $10,000 | ||
[To record sales on account] | |||
Cost of goods sold | $6,000 | ||
Inventory | $6,000 | ||
[To record cost of goods sold] | |||
Jan.24 | Accounts payable | $15,000 | |
Cash | $15,000 | ||
[To record cash paid for accounts payable] | |||
Jan.26 | Cash | $6,000 | |
Accounts receivable | $6,000 | ||
[To record cash collected from customers] | |||
Jan.28 | Utilities expense | $1,000 | |
Cash | $1,000 | ||
[To record payment of utilities] | |||
Jan.30 | Rent expense | $2,000 | |
Prepaid rent | $2,000 | ||
Cash | $4,000 | ||
[To record payment of rent] |
Requirement 2:
Cash | Common stock | ||||||
Jan.1 | $100,000 | Jan.4 | $2,400 | Jan.1 | $100,000 | ||
Jan.15 | $30,000 | Jan.20 | $6,000 | Bal. | $100,000 | ||
Jan.22 | $10,000 | Jan.24 | $15,000 | ||||
Jan.26 | $6,000 | Jan.28 | $1,000 | Accounts payable | |||
Jan.30 | $4,000 | Jan.24 | $15,000 | Jan.2 | $35,000 | ||
Bal. | $117,600 | Bal. | $20,000 | ||||
Inventory | Notes payable | ||||||
Jan.2 | $35,000 | Jan.10 | $7,000 | Jan.15 | $30,000 | ||
Jan.22 | $6,000 | Bal. | $30,000 | ||||
Bal. | $22,000 | ||||||
Service revenue | |||||||
Prepaid insurance | Jan.10 | $12,000 | |||||
Jan.4 | $2,400 | Jan.22 | $10,000 | ||||
Bal. | $2,400 | Bal. | $22,000 | ||||
Prepaid rent | Cost of goods sold | ||||||
Jan.30 | $2,000 | Jan.10 | $7,000 | ||||
Bal. | $2,000 | Jan.22 | $6,000 | ||||
Bal. | $13,000 | ||||||
Accounts receivable | |||||||
Jan.10 | $12,000 | Jan.26 | $6,000 | Salaries and wages expense | |||
Bal. | $6,000 | Jan.20 | $6,000 | ||||
Bal. | $6,000 | ||||||
Utilities expense | |||||||
Jan.28 | $1,000 | ||||||
Bal. | $1,000 | ||||||
Rent Expense | |||||||
Jan.30 | $2,000 | ||||||
Bal. | $2,000 |
Requirement 3:
Halogen Laminted Products | ||
Unadjusted Trial Balance | ||
For the month ended January 30,2018 | ||
Account title | Debit | Credit |
Cash | $117,600 | |
Inventory | $22,000 | |
Prepaid insurance | $2,400 | |
Prepaid rent | $2,000 | |
Accounts receivable | $6,000 | |
Common stock | $100,000 | |
Accounts payable | $20,000 | |
Notes payable | $30,000 | |
Service revenue | $22,000 | |
Cost of goods sold | $13,000 | |
Salaries and wages payable | $6,000 | |
Utilities expense | $1,000 | |
Rent expense | $2,000 | |
Total | $172,000 | $172,000 |
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us.org/d2/Ims/dropbox/user/folder submit files.d212db-60213948grpid-08isprv 08bp 08ou 7653198 Accounting Cycles Helpful references from your text: -1 Accounting cycles through unadjusted trial balance . LO2-2, LO-3 Scenario Halogen Laminated Products Company began business on January 1. 2018. During January, the following transactions occurred (dates shown): . 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...
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