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Create a general journal January 1st Common stock is issued in exchange for cash

ID: 2535217 • Letter: C

Question

Create a general journal

January 1st Common stock is issued in exchange for cash in the amount of ………….………….……………………… 295,000 February 8th The company purchases and pays for 160 units of gourmet dog food at a price of $25 per unit ………….. 4,000 March 1st The company pays cash for a one-year insurance policy in the amount of ……………….………………………..….. 9,300 March 31st Rent on a retail space for 12 months is paid in the amount of …..……….……………………………………… 12,480 April 1st Grooming and boarding equipment with a useful life of 2 years is purchased for cash in the amount of …… 18,000 April 10th Grooming supplies purchased on account in the amount of …………..…………………………………………… 1,450 May 15th The company purchases and pays for another 370 units of gourmet dog food at a price of $29 per unit ….. 10,730 May 30th Grooming services are performed on account in the amount of …………………………………………………………..………… 13,625 June 1st The company pays for advertisements to be run for the next 12 months in the amount of ………………………. 864 June 30th The company issues a 5-year bond with a face value of $100,000 and a stated annual rate of 6%. Interest is due on June 30th each year. The market rate is 8% on the date of issuance ……………………………. 100,000 July 25th Dog-walking services are performed on account in the amount of …...……………………………..………… 14,225 July 31st 95 units of gourmet dog food are sold for $70 per unit with terms 2/10, n/30. The sale is recorded using the gross method in the amount of (see note c for cost flow assumptions) ……………………………………………………………………………………. 6,650 August 2nd Boarding services are provided on account in the amount of ………………………………………………………………. 6,280 August 6th The company receives full payment from the customer for the July 31st sale ……………………………………… 6,517 September 15th Pet sitting services are performed on account in the amount of ……………………..…………………………….………….. 6,245 September 29th Customer payments are received for services previously provided in the amount of ……………………………….. 1,250 October 13th 100 units of gourmet dog food are sold for $73 per unit with terms 2/10, n/30. The sale is recorded using the gross method in the amount of ………………………………………………………………………………………. 7,300 October 29th The company receives payment for half of the October 13th sale ……………………………………………………… 3,650 November 1st Equipment originally purchased on April 1st for $2400 is sold for $2000 cash November 15th A bookkeeper is hired to help the company with daily accounting taxes and annual tax preparation December 15th The bookkeeper is paid $3,500 for the previous month's services 3,500

Explanation / Answer

Date Particulars Debit Credit Jan-01 Cash 2,95,000.00 Common Stock 2,95,000.00 Feb-08 Purchase        4,000.00 Cash        4,000.00 Mar-01 Prepaid Insurance        9,300.00 Cash        9,300.00 Mar-31 Rent      12,480.00 Cash      12,480.00 Apr-01 Equipment      18,000.00 Cash      18,000.00 Apr-10 Supplies        1,450.00 Accounts Payable        1,450.00 May-15 Purchase      10,730.00 Cash      10,730.00 May-30 Accounts Receivable      13,625.00 Grooming Services      13,625.00 Jun-01 Advertisement            864.00 Cash            864.00 Jun-30 Cash 1,00,000.00 6% Bond 1,00,000.00 Jul-25 Accounts Receivable      14,225.00 Dog-Walking Services      14,225.00 Jul-31 Accounts Receivable        6,650.00 Sales        6,650.00 Aug-02 Accounts Receivable        6,280.00 Boarding Services        6,280.00 Aug-06 Cash        6,517.00 Discount Allowed            133.00 Accounts Receivable        6,650.00 Sep-15 Accounts Receivable        6,245.00 Pet Sitting Services        6,245.00 Sep-29 Cash        1,250.00 Accounts Receivable        1,250.00 Oct-13 Accounts Receivable        7,300.00 Sales        7,300.00 Oct-29 Cash        3,650.00 Accounts Receivable        3,650.00 Nov-01 Cash        2,000.00 Loss on sale of equipment            400.00 Equipment        2,400.00 Nov-15 No Entry Dec-15 Salary        3,500.00 Cash        3,500.00

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