shool gokd-soul la women\'s swi....shophearts Job Description Cloud Bing Yahoo G
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shool gokd-soul la women's swi....shophearts Job Description Cloud Bing Yahoo Google Wikipedia Facebook Twitter Linha Saved The following transactions occurred at the Daisy King Ice Cream Company 1. Started business by issuing 10,000 shares of common stock for $40,000 2. Signed a franchise agreement to pay royalties of 5% of sales. 3. Leased a building for three years at $700 per month and paid six months' rent in advance. 4. Purchased equipment for $7,400, paying $2,000 down and signing a two-year, 10% note for the balance. 5. Purchased $3,800 of supplies on account. 6. Recorded cash sales of $2,800 for the first week 7. Paid weekly salaries and wages, $1,320. 8. Paid for supplies purchased in item (5). 9. Paid royalties due on first week's sales. 10. Recorded depreciation on equipment, $120 Required: Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transacti journal entry required" in the first account field.) View transaction list Journal entry worksheet NextExplanation / Answer
Sl.No Accounts Titles & Explanation Debit ($) Credit ($) 1 Cash 40,000 Common Stock 40,000 (To record issues of 10,000 common stock) 2 NO ENTRY 3 Prepaid Rent ($700 * 6 ) 4,200 Cash 4,200 (To record advance payment of rent ) 4 Equipment 7,400 Cash 2,000 10 % Notes Payable 5,400 ( To record purchase of equipment & payment partly paid in cash & notes for the balance) 5 Supplies 3,800 Accounts Payable 3,800 (To record purchase of supplies on account) 6) Cash 2,800 Sales Revenue 2,800 (To record cash sales) 7 Salaries Expense 1,320 Cash 1,320 (To record payment of salaries) 8 Accounts Payable 3,800 Cash 3,800 (To record payment made supplies purchased on account) 9 Royalties Expenses ($2,800 * 5 %) 140 Cash 140 (To record payment of royalties @ 5 %of sales revenue) 10 Depreciation Expenses 120 Accumulated depreciation 120 (To record depreciation on equipment)
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