Updat lternative Problems PROBLEMS The Tazmanian Hat Company began business in J

Question

Updat lternative Problems PROBLEMS The Tazmanian Hat Company began business in July 2013. During July, the following transactions occurred: Jul. Issued common stock in exchange for $1,000,000 cash. Purbhased inventory on account for $80,000 (che perpetual inventory system is used). Paid the company's landlord $10,000 for rent for the upcoming year Sold merchandise on account for $120,000. The cost of the merchandise was $75,000. Borrowed $ 50,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in one year. Paid employees $15,000 wages for the first half of the month. Paid $50,000 to suppliers for the merchandise purchased on July 2. Collected $60,000 on account from customers. Paid various utility bills of $1,500 for the month of July. Paid $8,000 in insurance for the period August 1, 2013 to October 1, 2014. 1 2 4 10 15 20 24 26 28 31 Required: . Prepare general journal entries to record each transaction. Omit explanations. 2. Post the entries to T-accounts. 3. Prepare an unadjusted trial balance as of July 31, 2013. F4 FS F6 F7 FB F9 F10

Explanation / Answer

1.

2.

3.

Date General Journal Debit Credit Jul. 1 Cash 1000000 Common stock 1000000 2 Inventory 80000 Accounts payable 80000 4 Prepaid rent 10000 Cash 10000 10 Accounts receivable 120000 Sales revenue 120000 Cost of goods sold 75000 Inventory 75000 15 Cash 50000 Notes payable 50000 20 Wages expense 15000 Cash 15000 24 Accounts payable 50000 Cash 50000 26 Cash 60000 Accounts receivable 60000 28 Utility expense 1500 Cash 1500 31 Prepaid insurance 8000 Cash 8000

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

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