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erm In Pr File insert Page Layout Formulas Data ReviewView Help Calibri Accounti

ID: 2549043 • Letter: E

Question

erm In Pr File insert Page Layout Formulas Data ReviewView Help Calibri Accounting Paste Format Painter B I u Font Alignment Number L154 Robin opened her business, Jealous Scarf Fashion Design (JSFD) on Jan1. Prepare the journal entries for the transactions that occurred in the month of January important Notes about JSFD For tracking inventory, the company uses FIFO (you will have to keep track of inventory in order to properly journal the sale of goods) eJSFD sells shirts for $32 and pants for $56 JSFD is a brand new company that has not previously operated Based on industry data, JSFD assumes that 2% of all sales will be returned **Enter all accounts titles that will be Debited in column B and account titles to be credited in column C Robin contributed $20,000 cash and land valued at $55,000 to JSFD in exchange for common stock. 1-Jan Q2"; Journal Entries Account..dantng Entres i Austed trial 49

Explanation / Answer

Journal entries

date

explanation

debit

credit

1-Jan

cash

20000

land

55000

common stock

75000

2-Jan

prepaid rent

15000

cash

15000

2-Jan

notes payable

125000

cash

125000

3-Jan

building

65000

cash

65000

3-Jan

equipment

15000

cash

15000

4-Jan

office supplies

2500

accounts payable

2500

4-Jan

inventory

10000

accounts payable

10000

5-Jan

accounts receivable

17600

sales revenue

17600

5-Jan

cost of good sold

5000

inventory

5000

6-Jan

inventory

4600

accounts payable

4600

8-Jan

accounts payable

10000

cash

9700

discount

300

10-Jan

accounts payable

2500

cash

2500

15-Jan

wages expense

2500

cash

2500

15-Jan

cash

24800

sales revenue

24800

15-Jan

cost of good sold

7100

inventory

7100

17-Jan

cash

17052

accounts receivables

17052

17-Jan

inventory

348

cost of goods sold

348

18-Jan

accounts rreceivables

5800

sales revenue

5800

18-Jan

cost of good sold

1675

inventory

1675

20-Jan

utility bill

270

cash

270

22-Jan

sales revenue

600

accounts receivables

600

22-Jan

inventory

165

cost of goods sold

165

23-Jan

prepaid advertisement

2400

cash

2400

25-Jan

accounts payable

4600

cash

4462

discount

138

26-Jan

prepaid insurance

2600

cash

2600

30-Jan

dividend payable

1500

cash

1500

31-Jan

income tax expense

8696.8

cash

8696.8

Journal entries

date

explanation

debit

credit

1-Jan

cash

20000

land

55000

common stock

75000

2-Jan

prepaid rent

15000

cash

15000

2-Jan

notes payable

125000

cash

125000

3-Jan

building

65000

cash

65000

3-Jan

equipment

15000

cash

15000

4-Jan

office supplies

2500

accounts payable

2500

4-Jan

inventory

10000

accounts payable

10000

5-Jan

accounts receivable

17600

sales revenue

17600

5-Jan

cost of good sold

5000

inventory

5000

6-Jan

inventory

4600

accounts payable

4600

8-Jan

accounts payable

10000

cash

9700

discount

300

10-Jan

accounts payable

2500

cash

2500

15-Jan

wages expense

2500

cash

2500

15-Jan

cash

24800

sales revenue

24800

15-Jan

cost of good sold

7100

inventory

7100

17-Jan

cash

17052

accounts receivables

17052

17-Jan

inventory

348

cost of goods sold

348

18-Jan

accounts rreceivables

5800

sales revenue

5800

18-Jan

cost of good sold

1675

inventory

1675

20-Jan

utility bill

270

cash

270

22-Jan

sales revenue

600

accounts receivables

600

22-Jan

inventory

165

cost of goods sold

165

23-Jan

prepaid advertisement

2400

cash

2400

25-Jan

accounts payable

4600

cash

4462

discount

138

26-Jan

prepaid insurance

2600

cash

2600

30-Jan

dividend payable

1500

cash

1500

31-Jan

income tax expense

8696.8

cash

8696.8