What would the Financial Journal Entry look like for these below events? The fol

Question

What would the Financial Journal Entry look like for these below events?

The following events occur in July, 2018 July 1: You take $10,000 from your personal savings account and buy common stock in Peyton Approved July 1: Purchase $6,500 in baking supplies from vendor, on account. July 3: Your parents lend the company $10,000 cash in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity. July 7: Enter into a lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, and the last month's rent payment of $1,500 is required at time of lease agreement. The payment was made in cash. Lease period is effective July 1, 2018, through June 30, 2019. July 10: Pay $375 to the county for a business license. July 11: Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment-use misc. exp.). July 13: You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $6,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life. July 13: Pay $200 for business cards/flyers/posters/ads to use for advertising. July 14: Pay $300 for office supplies. July 15: Hire part-time helper to be paid $12 per hour. Pay periods are the 1st through the 15th and 16th through the end of the month, with paydays being the 20th for the first pay period and the 5th of the following month for the second pay period. (No entry is required on this date; it is here for informational purposes only.) July 30: Received telephone bill for July in amount of $75. Payment is due on August 10. July 31: Pay $2,400 for a 12-month insurance policy. Policy effective dates are August 1, 2018, through July 31, 2019. July 31: Accrue wages earned for employee for period of 16th through 31st of July (Wage calculations table provided below) July 31: Total July bakery sales were $15,000. $5,000 of these sales are on accounts receivable

Explanation / Answer

Answer - Journal Entries

Date (2018) General Journal Debit ($) Credit($) 1-Jul Cash         10,000 Common stock         10,000 1-Jul Banking Supplies           6,500 Accounts Payable           6,500 3-Jul Cash         10,000 Notes Payable         10,000 7-Jul Rent Expense           1,500 Prepaid Rent           1,500 cash           1,500 10-Jul Business Licence Expense               375 cash               375 11-Jul Miscellaneous Expense               250 Cash               250 13-Jul Baking Equipment           6,000 Common Stock           6,000 13-Jul Advertising Expense               200 Cash               200 14-Jul Miscellaneous supplies               300 Cash               300 31-Jul Prepaid Insurance           2,400 Cash           2,400 31-Jul Wages Calculation table is missing But the accounting entry will be as follows Wages Expense xxx Wages Payable xxx 31-Jul Accounts Receivables           5,000 Cash         10,000 Baking Sales         15,000

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