Good Luck Shoes Corporation operates a store that sells shoes. The following are

Question

Good Luck Shoes Corporation operates a store that sells shoes. The following are the transactions that occurred during the first quarter of operations- Jan. 1 to Mar. 31, 2013.

Jan.     1  Two individuals each invested $50,000 in the corporation. Each investor was

                issued 5,000 shares of $2 par value common stock.

Jan.     2   Purchased furniture and fixtures from Acme Furniture for $9,600 cash.

Jan.     4   Purchased $1,500 of supplies for cash.

Jan.   15   Paid $18,000 in advance for one year

Explanation / Answer

Answer question

Adjusting Entries Date Account Details LF Debit $ Credit $ 30-Mar Supplies Expense 500 Supplies 500 (To record supplies used) Depreciation Expense 160 Accumulated Depreciation 160 (To record monthly depreciation) Salaries Expense 4,000 Salaries Payable 4,000 (To record accured salaries) Accounts Receivable 200 Service Revenue 200 (To record revenue earned )

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