Expert Q&A Done How to do posting to the Ledger and Unadjusted Trial Balance ESS

Question

Expert Q&A Done How to do posting to the Ledger and Unadjusted Trial Balance ESSAY. Write your in the space previded or on a wparate sheet of paper I) Complete the Accounting Csle uning the following transactions of Daiy King Company, If an entry is not required, state "No Entry "perpetual systiem Aug. 1 Started business by issuing 15,000 shares of common stock for $30 2 Signed a franchise 3. Leased a builling ff three years atyso per montand paid"xmoetrentin abvwe J. Paid Insurance for the entire year 51.200 4Puchased equipment for S3,400, poying $1,000 down and signing a two? 10% for the balance. Five years useful life. 5. Purchased $1,200 of supplies account 5. Purchased inventony $3.000 on account 6, Recorded cash sales of $1.200 for the first week. 5600 cost. 10. Paid weekly salainies and wages, 554 per day every saturday of the weck(August has our weeks) 14. Paid for supplies purchased in item (5) 17. Recorded sales of $1,200, recieved 1000 cash$200 on account1/15. no), s600 20. Received advertising invoice, $200 24. Cash Sales of $1,800 for, $700 cost. 25. Received $550 for inventory that is on backorder,cost $250 30. Paid utilities $860. 31 Cash sales recorded $2,000, $800 cost. 31. Paid royalties due on for each week's sales Adjustments for the end of the month: a. Leased expense for the end of the month b. Recorded depreciation on equipment. c. Supplies on hand at the end of the month 200. d. Salaries and wages for the last weck of august will be paid on September 1 e. Received cash from customer . Inventory on backordered was delivered to customer g Insurance expense for the month.

Explanation / Answer

JOURNAL ENTRY Date Account Debit Credit Aug 1 Cash $30,000 Common Stock $30,000 2 No   Entry Required 3 Prepaid rent $1,950 (650*3) Cash $1,950 3 Prepaid Insurance $1,200 Cash $1,200 4 Equipment $3,400 Cash $1,000 Notes Payable $2,400 (3400-1000) 5 Supplies $1,200 Accounts Payable $1,200 5 Inventory $3,000 Accounts Payable $3,000 6 Cash $1,200 Sales Revenue $1,200 Cost of goods sold $600 Inventory $600 10 Salaries & Wages Expenses $1,080 (54*5*4) Cash $1,080 14 Accounts Payable $1,200 Cash $1,200 17 Cash $1,000 Accounts Receivable $200 (1200-1000) Sales Revenue $1,200 Cost of goods sold $600 Inventory $600 20 Advertising expenses $200 Accounts payable $200 24 Cash $1,800 Sales Revenue $1,800 Cost of goods sold $700 Inventory $700 25 Cash $550 Unearned Revenue $550 30 Utilities Expenses $860 Cash $860 31 Cash $2,000 Sales Revenue $2,000 Cost of goods sold $800 Inventory $800 31 Royalty expense $310 0.05*(1200+1200+1800+2000) Cash $310 (Royalty=5% on sales ) POSTING TO LEDGER Cash Date Description Debit Credit Aug 1 Common Stock $30,000 3 Prepaid rent $1,950 3 Prepaid Insurance $1,200 4 Equipment $1,000 6 Sales Revenue $1,200 10 Salaries & Wages Expenses $1,080 14 Accounts Payable $1,200 17 Sales Revenue $1,000 24 Sales Revenue $1,800 25 Unearned revenue $550 30 Utilities Expenses $860 31 Sales Revenue $2,000 31 Royalty expense $310 Ending Balance $28,950 Prepaid Rent Date Description Debit Credit Aug 3 Cash $1,950 Prepaid Insurance Date Description Debit Credit Aug 3 Cash $1,200 Supplies Date Description Debit Credit Aug 5 Accounts Payable $1,200 Inventory Date Description Debit Credit Aug 5 Inventory $3,000 6 Cost of goods sold $600 24 Cost of goods sold $700 17 Cost of goods sold $600 31 Cost of goods sold $800 Ending Balance $300 Accounts Receivable Date Description Debit Credit Aug 17 Sales Revene $200 Equipment Date Description Debit Credit Aug 4 Purchase $3,400 Accounts Payable Date Description Debit Credit Aug 5 Supplies $1,200 5 Inventory $3,000 14 Cash $1,200 20 Advertising expenses $200 Ending Balance $3,200 Notes Payable Date Description Debit Credit Aug 4 Equipment $2,400 Unearned Revenue Date Description Debit Credit Aug 25 Cash $550 Common Stock Date Description Debit Credit Aug 1 Cash $30,000 Sales Revenue Date Description Debit Credit Aug 6 Cash $1,200 17 Sales $1,200 24 Cash $1,800 31 Cash $2,000 Ending Balance $6,200 Cost of goods sold Date Description Debit Credit Aug 6 Inventory $600 17 Inventory $600 24 Inventory $700 31 Inventory $800 Ending Balance $2,700 Salaries & Wages expenses Date Description Debit Credit Aug 10 Cash $1,080 Utilities Expenses Date Description Debit Credit Aug 30 Cash $860 Advertising expenses Date Description Debit Credit Aug 20 Accounts payable $200 Royalty expenses Date Description Debit Credit Aug 31 Cash $310 TRIAL BALANCE Account Debit Credit Cash $28,950 Prepaid Rent $1,950 Prepaid Insurance $1,200 Supplies $1,200 Inventory $300 Accounts Receivable $200 Equipment $3,400 Accounts Payable $3,200 Notes Payable $2,400 Unearned Revenue $550 Common Stock $30,000 Sales Revenue $6,200 Cost of goods sold $2,700 Salaries & Wages expenses $1,080 Utilities Expenses $860 Advertising expenses $200 Royalty expenses $310 TOTAL $42,350 $42,350

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