Question

can you help me with the Journal entry, T account , Balance sheet , Income Stayement , Owner equity , Earning per share.

January 1, 2020...We formed a corporation, Hot Dogs, Inc., and you and everyo Hot Dogs, Inc., and you and everyone in the class invested $100 each in our venture. Everyone got one share of stock for that investment. Assume there are 90 of us. We elected a Board of Directors, a COO and we start to do business. First we borrowed $10.000 from the bank and bought a new cart for that amount. The loan carries an 8% interest rate. During the year we bought 13,000 dogs and 15,000 buns. Dogs cost. 15 and buns are .05 each. For our first year, we sold 14,000 dogs for $2 each. We paid our worker $7.200, paid office expenses of $3,600 and $800 for interest. On September 30 we sold 20 more shares for $300 each. At the end of the year we owed our worker $100. The tax rate is 30% and we will pay our taxes next year. How did we do? Are we rich yet? Was it a good investment?

i just need help with the T account, journal entry , balance sheet, income statement, earning per share

Answer 1

Hot Dogs Inc. Journal Enteries Trans. Particulars 1 Cash a/c Dr. To Common Stock (Common stock purchased) Debit in $ Credit in $ 9000 9000 10000 Cash a/c Dr. To Note Payable (Borrowed from Bank) 10000 3 Dr. 10000 Cart a/c To Cash (Cart purchased) 10000 4 2250 750 Inventory - Dogs a/c Dr. Inventory - Buns a/c Dr. To Cash (Inventory purchased) 15000 x 0.15 = 2250; 15000 x 0.05 = 750 3000 Dr. 28000 Cash a/c To Sales (Sales in cash) 28000 Cost of goods sold a/c Dr. 2100 To Inventory - Dogs (To record cost of goods sold) 14000 x 0.15 = 2100 2100

Trans. 6 Dr. Particulars Wages Expense a/c To Cash (Wages paid) Debit in $ Credit in $ 7200 7200 7 Dr. 3600 Office Expenses a/c To Cash (Office expenses paid) 3600 8 Dr. 800 Interest Expense a/c To Cash (Interest paid) 800 6000 Cash a/c Dr. To Common Stock To Additional Paid in Capital (Common stock purchased) 2000 4000 10 Dr. 100 Wages Expense a/c To Wages Payable (Wages accrued) 100 11 4260 Income Tax Expense a/c Dr. To Income Tax Payable (Income tax accrued) 4260

Trial Balance For the period ending Dec 31 Particulars Cash Inventory - Dogs Inventory - Buns Cart Wages Payable Income Tax Payable Note Payable Common Stock Additional Paid in Capital Sales Cost of goods sold Wages Expense Office Expenses Interest Expense Income Tax Expense Totals Debit in $ Credit in $ 28400 150 750 10000 100 4260 10000 11000 4000 28000 2100 7300 3600 800 4260 57360 57360

Statement of Income For the period ending Dec 31 Sales Cost of goods sold Gross Profit 28000 -2100 25900 Wages Expense Office Expenses Interest Expense 7300 3600 800 11700 14200 -4260 9940 Income Tax Expense @ 30% Net Income Statement of Retained Earnings For the period ending Dec 31 Net Income 9940 Earning per share = Net Income / No. of outstanding shares = 9940/( 90 + 20 ) = 90.36

Amounts in $ Amounts in $ 100 4260 4360 Balance sheet As at Dec. 31 Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities Cash 28400 Wages Payable Inventory - Dogs 150 Income Tax Payable Inventory - Buns 750 29300 Non Current Liabilities Non Current Assets Note Payable 10000 Shareholders Equity Common Stock Additional Paid in Capital Retained Earnings Total Assets 39300 Total Liabilitoes & Equity 10000 Cart 11000 4000 9940 24940 39300