Steps 9 & 10: Journalize and Post the July Business Transactions July 1, Bought

Question

Steps 9 & 10: Journalize and Post the July Business Transactions July 1, Bought a printer (3-year estimated life), wrote check for $325 Check 107 July 1Hannah hires an art student from TTU to work in the store three hours a week. She will pay the student $15 per hour for her time. You agree she will be paid on the first of the month for all the hours she worked the month before. (She is unaware of the concept of payroll taxes) When you find out she has done this, you will have to explain that to her and help her prepare all of the paperwork) July 3". Hannah pays $75 for a new sign and logo to be painted on her window Check #208. July S, Hannah buys store supplies for $35 out of petty cash 3, 5. Hannah calls Mr. Taylor about the bounced check, and gets no answer 6. July 5", Hannah writes a check to herself for her living expenses, $1,500 Check #109 7. July 7m, Hannah pays for the furniture she bought last month, S6,000Check #220. 8 July 9Hannah finds a local pottery supplier that is trying to liquidate inventory, She purchases 100 pieces of pottery for $2 each. Her inventory now consists of special art pieces, metal, glass, and pottery items. Check #1 11. 9. On July 10, after several missed opportunities to sell metal silverware, she decides to stock 6 sets of the most popular 2 patterns. She orders 12 sets of silverware for 535 each, with terms 2/10, n/60 10. On Juy 15h she sales one of her studio tables to a local artist. This item was not for sale, but was not being used and the artist offered her $1,000 (which is more than she paid for it in June, $850). Note that you have already recorded depreciation on this table for June and must record $3 in depreciation for July The artist paid her $1,000 cash 11.On July 15" Hannah pays everything that is owed to the metal shop. Check #112. 12. Hannah calls Mr. Taylor about the bounced check and gets no answer.(Send Hannah an email- post it on your group's discussion board-about issues related to this transaction, see deliverables for more instructions) 13 July 16 ,Sold 4 ornaments, $50 cash 4 July 17 Sold S ornaments,$125 cash 5 July 19 Sold 6 silverware sets, $4S0 cash 6 July 23 Sold one of the special gallery pieces. The sculpture was made by a ceramics artist who is in residence at the Art Center, He agreed to take $3,000 for the sculpture. She finds a buyer who will pay $4,500. She knows the customer from a chamber of commerce meeting and is excited to have a well-connected customer so she offers 1/10, net 30 terms 7. July 23 Hannah pays the bills for GES online through her bank with no fees, She pays $16 for water, sewer, and garbage, $79 for electricity, $42 for her celliphone that she uses for business purposes, and $43 for basic internet service 18 July 25, the employee works 2 hours while Hannah delivers and installs the sculpture 19 July 26,Hannah pays the local artist for the sculpture,$3,000.Check #113

Explanation / Answer

Solution:

Journal Entries in the books of Hannah

Working Notes:

S No Date Particulars Debit Credit 1 01-Jul Printer 325 Bank 325 (Being Printer Purchased vide check # 107) 2 01-Jul No Entry required, as No Transaction Happened 3 03-Jul Advertisement Expense 75 Bank 75 (Being amount paid for new sign & logo vide check # 108) 4 05-Jul Material Consumed 35 Cash 35 (Being store supplies Purchased) 5 No Entry required, as No Transaction Happened 6 05-Jul Drawing Account 1500 Bank 1500 (Being amount withdrawn for personal use vide check # 109) 7 07-Jul Sundry Creditors 6000 Bank 6000 (Being outstanding amount paid vide Check # 110) 8 09-Jul Inventory 200 Bank 200 (Being 100 pieces of Pottery purchased at $2 each vide Check # 111) 9 10-Jul Inventory 420 Sundry Creditors 420 (Being 12 sets of Silver ware purchased with terms 2/10, n/60 10 15-Jul Cash 1000 Depreciation 3 Furniture (Refer Note 1) 844 Profit on Sale of Fixed Assets 159 (Being Studio Table sold for cash) 11 15-Jul Sundry Creditors 420 Cash Discount 8.40 Bank 411.60 (Being amount paid in full to Metal shop availing cash discount of 2 percent as the payment is made within 10 days vide Check # 112) 12 No Entry required, as No Transaction Happened 13 16-Jul Cash 50 Sales 50 (Being ornaments sold for cash) 14 17-Jul Cash 125 Sales 125 (Being ornaments sold for cash) 15 19-Jul Cash 450 Sales 450 (Being silverware sold for cash) 16 23-Jul Purchase 3000 Sundry Creditors 3000 (Being sculpture purchased from artist) 23-Jul Sundry Debtors 4500 Sales 4500 (Being Sculpture Sold to Customer on 1/10 net 30 terms) 17 23-Jul Office cleaning expenses 16 Electricity Expenses 79 Telephone Expenses 42 Internet expenses 43 Bank 180 (Being amount paid to GES through online banking) 18 25-Jul No Entry required, as No Transaction Happened 19 26-Jul Sundry Creditors 3000 Bank 3000 (Being amount paid to artist vide check # 113)

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