hi guys if i could get help with this it would be really appreciated thanks On 1
ID: 2477124 • Letter: H
Question
hi guys if i could get help with this it would be really appreciated thanks
On 1 April 2015, Ms. Velma Dinkley founded Mysteries Inc. Dog Snacks Company (MIDS Co.). a company with tax exempt status which sells specialty dog treats and toys. The following transactions occurred during the first month of operations: On 1 April. MIDS Co. was incorporated. Common stockholders invested $140.000 cash and received a total of 10.000 shares of $1 par value common stock. On 1 April, the company signed a rental agreement for retail space. The agreement calls for rent of $2,000 per month, payable quarterly in advance. Therefore, the company paid $6,000 cash on April 1. MIDS Co. purchased store fixtures and equipment on 1 April for $36,000. The company paid $12,000 cash and signed a note promising to pay the remainder in 9 months, on 31 December 2015. On 31 December. MIDS Co. will also have to pay interest on the borrowed amount based on an annual rate of 12%. The estimated useful economic life of the store fixtures and equipment is 6 years and their estimated salvage value was $0. The company uses straight-line depreciation. The company spent $10,500 cash for advertising which ran during April. During April, the company purchased $80,000 of inventory from various suppliers, paying $45,000 in cash and the remainder $35,000 on credit. During April, the company sold merchandise for cash of $25,000 and on account for $65,000. The merchandise cost the company $37,000. During April, wages of $34,000 to employees were paid in cash. Record in journal entries all transactions related to the events listed above and. if needed, include closing entries. For each journal entry, use the format we followed in lectures. Please number your journal entries as in the question above. For each journal entry, include the accounts affected, by how much, and whether debited (DR) or credited (CR). To simplify presentation of journal entries, use the following abbreviations:Explanation / Answer
Dr Cr Abbreviation 1, April Cash $ 140,000 (A) Common Stock $ 10,000 (SE) Additional paid in capital $ 130,000 (SE) 1, April Prepaid Rent 6000 (A) Cash 6000 (A) 1, April Store Fixture & Equipment 36000 (A) Note payable 24000 (L) Cash 12000 (A) Advertising Expenses 10500 (E) Cash 10500 (A) Inventory 80000 (A) Cash 45000 (A) A/P 35000 (L) Cash 25000 (A) A/R 65000 (A) sales 90000 ( R) Cost of goods sold 37000 (E) Inventory 37000 (A) Salaries and wages 34000 (E) Cash 34000 (A)
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