Ask Question
BusinessBusiness
2 September, 08:21

Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $20,000 cash. Paid $1,500 for advertising expense. Required a. Record the general journal entries for the preceding transactions. b. Post each of the entries to T-accounts. c. Prepare a trial balance to prove the equality of debits and credits.

+1
Answers (1)
  1. 2 September, 08:52
    0
    The answer is given below

    Explanation:

    a. Cash Dr.$30,000

    Common stock Cr.$30,000

    Inventory Dr.$15,000

    Cash Cr.$15,000

    Cash Dr.$20,000

    Sales Revenue Cr.$20,000

    Cost of Goods Sold Dr.$9,000

    Inventory Cr.$9,000

    Advertising Expense Dr.$1,500

    Cash Cr.$1,500

    b. Cash

    Dr. Cr.

    Common Stock 30,000 Inventory 15,000

    Sales 20,000 Advertising Exp 1,500

    C/F 33,500

    Common Stocks

    Dr. Cr.

    C/F 30,000 Cash 30,000

    Inventory

    Dr. Cr.

    Cash 15,000 Cost of Goods Sold 9,000

    C/F 6,000

    Sales

    Dr. Cr.

    C/F 20,000 Cash 20,000

    Cost of Goods Sold

    Dr. Cr.

    Inventory 9,000 C/F 9,000

    Advertising Expense

    Dr. Cr.

    Cash 1,500 C/F 1,500

    c. Trail Balance

    Dr. Cr.

    Cash 33,500

    Common Stocks 30,000

    Inventory 6,000

    Sales 20,000

    Cost of Goods sold 9,000

    Advertising Expense 1,500

    Total 50,000 50,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $20,000 cash. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Kaye owns an 85% interest in the capital and profits of Amor Antiques, a partnership. In Year 2, Kaye sold an oriental lamp to Amor for $6,000.
Answers (1)
Which of the following is NOT a possible reason why Uber opted to expand its on-demand transportation services into foreign markets?
Answers (1)
N the 1930s, what caused Canada to respond by raising its tax on goods imported from the United States? the Glass-Steagall Act the drop in the gold standard the global depression the Hawley-Smoot Tariff
Answers (1)
Caitlin Grasso is a salesperson in the kitchen and bath department at Morris Supplies, Inc. She is guaranteed a minimum salary of $200 per week plus 5.5% of her total sales. What are her total sales for a week in which her gross pay was $560.
Answers (1)
What are the input, conversion, and output of operating a summer band camp
Answers (1)
New Questions in Business
Match the business with the appropriate cost system (s) for that business using the number of the cost system where 1 = job order costing, 2 = process costing, and 3 = activity-based costing. a. Ketcher, Tryer, and Friar, attorneys-at-law b.
Answers (1)
Solemon Company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solemon wants to earn a targeted profit of $3,600, how many units must be sold?
Answers (1)
Using the following information, what is the amount of net income? Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832
Answers (1)
You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. O True O False
Answers (1)
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Home » Business » Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $20,000 cash. Paid $1,500 for advertising expense. Required a.
Sign Up Forgot Password?