30.00 points Jessica Pothier opened FunFlatables on June 1. The company rents ou

Question

30.00 points Jessica Pothier opened FunFlatables on June 1. The company rents out moon walks and inflatable slides for parties and corporate events. The company also has obtained the use of an abandoned ice rink located in a local shopping mall, where its rental products are displayed and available for casual hourly rental by mall patrons. The following transactions occurred during the first month of operations. 1. Jessica contributed $45,000 cash to the company on June 1 in exchange for its common stock. 2. Purchased inflatable rides and inflation equipment on June 2, paying $20,700 cash. 3. Received $8,550 cash from casual hourly rentals at the mall on June 3. 4. Re nted rides and equipment to customers for $11,300. Received cash of $2,700 on June 4 and the rest is due from customers 5. Received $3,300 from a large corporate customer on June 5 as a deposit on a party booking for July 4. 6. Began t o prepare for the July 4 party by purchasing various party supplies on June 6 on account for $610. 7. On June 7, paid $9,650 in cash for renting the mall space this month. 8. On June 8, prepaid next month's mall space rental charge of $9,650. 9. Received $2,200 on June 9 from customers on accounts receivable 10.Paid $1,150 for running a television ad on June 10. 11.Paid $5,450 in wages to employees on June 30 for work done during the month. 9 Required: 1. Prepare the journal entry for each of the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list

Explanation / Answer

Answer 1. Journal Entry S.No. Date Particulars Dr. Amt. Cr. Amt. 1 1-Jun Cash    45,000.00    Common Stock    45,000.00 (To record the issue of common stock) 2 2-Jun Equipment    20,700.00    Cash    20,700.00 (To record the purchase of inflation equip.) 3 3-Jun Cash      8,550.00    Service Revenue      8,550.00 (To record the service revenue) 4 4-Jun Cash      2,700.00 Accounts Receivables      8,600.00    Service Revenue    11,300.00 (To record the service revenue) 5 5-Jun Cash      3,300.00    Unearned Revenue      3,300.00 (to record advance recd. From customer) 6 6-Jun Supplies          610.00    Accounts Payable          610.00 (to record the supplies purcahses) 7 7-Jun Rent Expense      9,650.00    Cash      9,650.00 (To record the rent paid for mall space) 8 8-Jun Prepaid Rent      9,650.00    Cash      9,650.00 (To record the rent paid for next month mall space) 9 9-Jun Cash      2,200.00 Accounts Receivable      2,200.00 (To record the cash received) 10 10-Jun Advertising Expense      1,150.00    Cash      1,150.00 (to record the cash paid for advertsiment on TV) 11 30-Jun Salaries & Wages Expense      5,450.00    Cash      5,450.00 (To record the wages paid) Answer 2. Cash Accounts Receivable Supplies Beg. Bal.                   -      20,700.00 2-Jun Beg. Bal.                   -        2,200.00 9-Jun Beg. Bal.                 -   1-Jun    45,000.00      9,650.00 7-Jun 4-Jun      8,600.00 6-Jun       610.00 3-Jun      8,550.00      9,650.00 8-Jun 4-Jun      2,700.00      1,150.00 10-Jun 5-Jun      3,300.00      5,450.00 30-Jun 9-Jun      2,200.00 End. Bal.    15,150.00 End. Bal.      6,400.00 End. Bal.       610.00 Prepaid Rent Equipment Accounts Payable Beg. Bal.                   -   Beg. Bal.                   -   Beg. Bal.                   -   8-Jun      9,650.00 2-Jun    20,700.00          610.00 6-Jun End. Bal.      9,650.00 End. Bal.    20,700.00 End. Bal.          610.00 Unearned Revenue Common Stock Service Revenue Beg. Bal.                   -   Beg. Bal.                   -   Beg. Bal.                   -        3,300.00 5-Jun    45,000.00 1-Jun      8,550.00 3-Jun    11,300.00 4-Jun End. Bal.      3,300.00 End. Bal.    45,000.00 End. Bal.    19,850.00 Rent Expenses Salaries & Wages Expenses Advertising Expenses Beg. Bal.                   -   Beg. Bal.                   -   Beg. Bal.                 -   7-Jun      9,650.00 30-Jun      5,450.00 10-Jun    1,150.00 End. Bal.      9,650.00 End. Bal.      5,450.00 End. Bal.    1,150.00 Answer 3. FUNFLATABLES Unadjusted Trial Balance Fo the Month Ended Jun-30 Particulars Dr. Amt. Cr. Amt. Cash    15,150.00 Accounts Receivable      6,400.00 Supplies          610.00 Prepaid Rent      9,650.00 Equipment    20,700.00 Accounts Payable          610.00 Unearned Revenue      3,300.00 Common Stock    45,000.00 Service Revenue    19,850.00 Rent Expenses      9,650.00 Salaries & Wages Expenses      5,450.00 Advertising Expenses      1,150.00 Total    68,760.00    68,760.00                   -   Answer 4-a. FUNFLATABLES Income Statement Fo the Month Ended Jun-30 Revenues Service Revenue    19,850.00 Expenses Rent Expenses      9,650.00 Salaries & Wages Expenses      5,450.00 Advertising Expenses      1,150.00    16,250.00 Net Income      3,600.00 Net Profit Margin 18.14% Answer 4-b. Worse

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