ACCT 201 Case Spring 2018 Page 3 Canine Cuisine, Inc. In August, 2018, Canine Cu

Question

ACCT 201 Case Spring 2018 Page 3 Canine Cuisine, Inc. In August, 2018, Canine Cuisine, Inc. was established in Lafayette, Louisiana, to sell gourmet dog evia the internet to individual and commercial customers across the United States. Luke Ward Pachi Lee are the major stockholders in this corporation. Part I: The company completed the following transactions during August 2018 August 1 Stockholders (Luke and Pachi) invested $60,000 cash in the business. 3 Purchased a computer system for use in the business for $12,000: paid $5,000 5 Hired Ima Nurd to design, set up, and operate the company's website. 8 Purchased $21,000 of gourmet dog cuisine from a local manufacturing company 10 Paid $6,000 for a one-year insurance policy effective August 1, 2018. 11 Received $9,000 cash for services to be provided from August 1 through 12 Purchased supplies for $6,200 on account. down and signed a 1 year 12% note for the balance. paid 1/3 in cash and the balance on account October 31, 2018. Paid $2,800 to advertise the opening of their business. $11,000. 15 18 Sold gourmet dog cuisine to customers on account for $26,000: the cuisine cost 23 Paid $4,700 to creditors on account. 25 Collected $12,600 from customers billed on August 18. 27 Sold gourmet dog cuisine to customers for $4,400 cash: the cuisine cost 29 30 $1,300 Paid $800 for utilities used during August. Declared and paid a $900 dividend. EQUIRED: Journalize the August transactions in the general journal. J 1 General Journal Date Ref Debit Credit Account Titles

Explanation / Answer

In the books of Canine Cuisine Inc. :

Canine Cuisine Inc.

Unadjusted Trial Balance

August 31

Canine Cuisine Inc.

Adjusted Trial Balance

August 31

Date Account Titles Debit Credit August $ $ 1 Cash 60,000 Common Stock 60,000 3. Computer System 12,000 Cash 5,000 Note Payable 7,000 5. No journal entry required 8. Inventory 21,000 Cash 7,000 Accounts Payable 14,000 10. Prepaid Insurance 6,000 Cash 6,000 11. Cash 9,000 Unearned Service Revenue 9,000 12. Supplies 6,200 Accounts Payable 6,200 15. Advertising Expense 2,800 Cash 2,800 18. Accounts Receivable 26,000 Sales 26,000 18. Cost of Goods Sold 11,000 Inventory 11,000 23 Accounts Payable 4,700 Cash 4,700 25 Cash 12,600 Accounts Receivable 12,600 27 Cash 4,400 Sales 4,400 27 Cost of Goods Sold 1,300 Inventory 1,300 29 Utlities Expense 800 Cash 800 30 Dividends 900 Cash 900

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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