otes: 1/1/2018 -Paid for 12 months rent -1/2/2018-Purchased office. Equipment 1/
ID: 2392284 • Letter: O
Question
otes: 1/1/2018 -Paid for 12 months rent -1/2/2018-Purchased office. Equipment 1/2/2018 Purchaed inventory on account. 1/3/2018Purchased general company supplies S 6000 Ten year life (no salvage $ 72,000 7/2018 Purchased /12/2018 Cash sales of 1/13/2018Sales on account for 1/14/2018Paid bi-monthly administrative salaries /14/2018Paid bi-monthly sales staff salaries. 1/17/2018 Sales on account for 1/18/2018Cash sales of 1/20/2018Legal fees 1/28/2018Paid bi-monthly administrative salaries. /28/2018Paid bi-monthly sales staff salaries. 1/30/2018 Sales on account for /31/2018Paid January utilities $7,000 Selling Expense 10,000 Sold to Penn Cylce (COGS is $6,000) $20,000 Sold to REI (COGS is $12,000) $ 5,000 Ignore payroll taxes $2,500 Ignore payroll taxes 18,000 Sold to Eric's Bike Shop (COGS is $10,800) $30,000 Sold to Dick's Sporting Goods(COGS is $18,000) $2,500 Administrative Expense 5,000 Ignore payroll taxes 2,500 Ignore payroll taxes 15,000 Sold to Gear West (COGS is $9,000 1,000 Administrative Expense Note: Sales and purchases on account are expected to be settled in approximately 30 days. Complete the following: 1. 2. 3. 4. Prepare journal entries for each event. Post the journal entries to "T' accounts (see format below) Prepare the January month-end trial balance Prepare an income statement for January 2Explanation / Answer
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Rolling River Copmany General Journal for the month of January 2018 Date Account Title Debit Credit 1/1/18 Prepaid Rent 48000 cash 48000 (Payment of 12-month rent ) 1/2/18 Office Equipment 60000 cash 60000 (Purchase of office equipment) 1/2/18 Inventory 72000 Accounts Payable 72000 (Purchase of inventory on account) 1/3/18 Supplies Expense 3000 cash 3000 (Purchase of general supplies) 1/7/18 Advertising Expense 7000 cash 7000 (Prpmotional material purchased) 1/12/18 cash 10000 Sales 10000 (Cash sales) Cost of goods sold 6000 Inventory 6000 (Cost of the goods sold for cash) 1/13/18 Accounts receivable 20000 Sales 20000 (Sales on account) Cost of goods sold 12000 Inventory 12000 (Cost of the goods sold on account)) 1/14/18 Administrative salaries 5000 sales Salaries 2500 cash 7500 (Payment of bimonthly salaries) 1/17/18 cash 30000 Sales 30000 (Cash sales) Cost of goods sold 18000 Inventory 18000 (Cost of the goods sold for cash) 1/18/18 Accounts receivable 18000 Sales 18000 (Sales on account) Cost of goods sold 10800 Inventory 10800 (Cost of the goods sold on account)) 1/20/18 Legal Fee Expense 2500 cash 2500 (Legal fee paid) 1/28/18 Administrative salaries 5000 sales Salaries 2500 cash 7500 (Payment of bimonthly salaries) 1/30/18 Accounts receivable 15000 sales 15000 (Sales on account) Cost of goods sold 9000 Inventory 9000 (Cost of the goods sold on account)) 1/31/18 Utility expense 1000 cash 1000 (Utility expense paid) 1/31/18 Rent Expense 4000 Prepaid Rent 4000 (Rent for the month) 1/31/18 Depreciation expense 500 Accumulated Depreciation 500 (Depreciation on office equipment) (60,000 / 10)/12Related Questions
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