Halogen Laminated Products Company began business on January 1, 2018. During Jan

Question

Halogen Laminated Products Company began business on January 1, 2018. During January, the following transactions occurred:

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.

Jan. 1 Issued common stock in exchange for $108,000 cash. 2 Purchased inventory on account for $43,000 (the perpetual inventory system is used). 4 Paid an insurance company $3,360 for a one-year insurance policy. 10 Sold merchandise on account for $12,800. The cost of the merchandise was $7,800. 15 Borrowed $38,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. 20 Paid employees $6,800 salaries and wages for the first half of the month. 22 Sold merchandise for $10,800 cash. The cost of the merchandise was $6,800. 24 Paid $15,800 to suppliers for the merchandise purchased on January 2. 26 Collected $6,400 on account from customers. 28 Paid $1,200 to the local utility company for January gas and electricity. 30 Paid $4,800 rent for the building. $2,400 was for January rent, and $2,400 for February rent.

Explanation / Answer

1.

2.

3.

Date Account Titles and Explanation Debit Credit Jan. 1 Cash 108000 Common stock 108000 (Common stock issued for cash) 2 Inventory 43000 Accounts payable 43000 (Inventory purchased on account) 4 Prepaid insurance 3360 Cash 3360 (One-year insurance paid) 10 Accounts receivable 12800 Sales revenue 12800 (Sales on account) Cost of goods sold 7800 Inventory 7800 (Cost of merchandise sold) 15 Cash 38000 Notes payable 38000 (Borrowing from bank against note) 20 Salaries and wages expense 6800 Cash 6800 (Salaries and wages paid) 22 Cash 10800 Sales revenue 10800 (Cash sales) Cost of goods sold 6800 Inventory 6800 (Cost of merchandise sold) 24 Accounts payable 15800 Cash 15800 (Payment on account) 26 Cash 6400 Accounts receivable 6400 (Collection on account) 28 Utility expense 1200 Cash 1200 (Utility bill paid) 30 Rent expense 2400 Prepaid rent 2400 Cash 4800 (Rent paid for January and February)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.