1. This assignment is designed to identify students who need help early in the c

Question

1. This assignment is designed to identify students who need help early in the class. Make a journal entry for each transaction on a sheet of paper. Include a brief explanation and a reference to a source document. Determine the balance of cash by setting up a T-account. Set up a blank journal on a sheet of paper. Use todays date for the first one and then add three days for the next one and so on. Obtained cash of $500,000 cash from 5, 000 shares of common stock. The company name is Thunder Road Enterprises. Made a bank deposit for $500,000 and received deposit slip #1 Used cash of $48,000; $85, 000 and $125 downtown Orlando office for 12-monts, purchase office computers expected to last for 5-years and inventory. Received receipts #1, #2 and #3 Purchased a fleet of drones, to deliver merchandise to customers, at a cost of $200,000, making a down payment of $50,000 to Drones- R-Us with the balance due in 9-months. Received receipt #4 Provided services to customers on account and sent them Sales Invoice #1 for $75,000. The invoice is due in 30 days Company employees have earned salaries of paid until next month. Write "payroll register" as the source doc Sent an electronic transfer to Drones-R- document that supports the transfer is ET Receipt #1 investors ln exchange for to prepay the rent on but won't be Us for $10,000. The source

Explanation / Answer

Requirement 1 Date Accounts title & Explanation Debit Credit Amount in $ 1 Cash 500000 Common Stock 500000 To record the issuance of 5000 shares of common stock 2 Prepaid Rent 48000 Computers 85000 Inventory 125000 Cash 258000 To record the payment towards prepaid rent, purchase of computers and inventory 3 Drone (Delivery Equipment) 200000 Cash 50000 Drones-R-Us(Accounts payable) 150000 To record the purchase of Drone 4 Accounts Receivable 75000 Sales Revenue 75000 To record the sales on account 5 Salaries Expense 80000 Salaries Payable 80000 To record the outstanding salaries 6 Drones-R-Us(Accounts payable) 10000 Cash 10000 To record the Payment by electric transfer Cash Reference Debit Reference Credit Common Stock Slip #1 500000 Prepaid Rent Receipts #1 48000 Computers Receipts #2 85000 Inventory Receipts #3 125000 Drone-R-Us Receipts #4 50000 Drone-R-Us ET Receipts #1 10000 Ending Balance 182000 Requirement 2 Asset = Liabilities +Common stock +Retained Earning +Revenue -Expense 1 issuance of Common Stock 500000 = 500000 2 Prepaid rent 48000 = -48000 = Purchase of computers 85000 = -85000 = Purchase of inventory 125000 = -125000 = 3 Purchase of Drone 200000 = 150000 -50000 = 4 Sales on account 75000 75000 5 outstanding salaries 80000 80000 6 Payment to Supplier -10000 -10000

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