Question

Eric Cartman started a new corporation, called “Nah Dawg”, to serve hot dogs in April of 2019. Transactions during the month of April were as follows:

April 1   Cartman invested $40,000 cash in the business and received 1,600 shares of capital stock.
April 3   Purchased a refrigerator from Stan Marsh Inc. for $5,000 in exchange for $2,700 cash and a note payable for the remaining balance.
April 4   Kitchen utensils were purchased for $900 in cash.
April 8   Paid $1,200 in salaries earned by employees during the first week.
April 10   Billed Butters Stotch Inc. $3,250 for catering an event.
April 12   Paid $700 for insurance for the month of April.
April 15   Collected $2,000 of the amount billed on April 10.
April 16   Paid $1,400 in salaries earned by employees during the second week.
April 17   Paid Kyle Broflovski Inc. $400 for a minor maintenance work.
April 21   Collected the remaining balance of the amount billed on April 10.
April 23   Received a $1,100 bill for supplies consumed in April. The entire payment is due May 10.
April 30   Paid $3,000 in rent.
April 30   Paid $3,000 for employee salaries for the second half of April.

Nah Dawg maintains the following accounts:
1. Cash   2. Accounts Receivable   3. Kitchen Utensils       4. Refrigerator
5. Accounts Payable   6. Notes Payable   7. Capital Stock   8. Sales Revenue
9. Wages Expense       10. Insurance Expense   11. Maintenance Expense
12. Supplies Expense    13. Rent Expense

Instructions
1.   Prepare journal entries for each transaction.
2.   Post each transaction to the appropriate ledger account
3.   Prepare a trial balance dated April 30, 2019.

Answer 1

1.

Date	Account title	Debit	Credit
Apr. 1	Cash	40,000
	Capital stock		40,000
Apr. 3	Refrigerator	5,000
	Cash		2,700
	Note payable		2,300
Apr. 4	Kitchen Utensils	900
	Cash		900
Apr. 8	Wages expense	1,200
	Cash		1,200
Apr. 10	Accounts receivable	3,250
	Sales revenue		3,250
Apr. 12	Insurance expense	700
	Cash		700
Apr. 15	Cash	2,000
	Accounts receivable		2,000
Apr. 16	Wages expense	1,400
	Cash		1,400
Apr. 17	Maintenance expense	400
	Cash		400
Apr. 21	Cash	1,250
	Accounts receivable		1,250
Apr. 23	Supplies expense	1,100
	Accounts payable		1,100
Apr. 30	Rent expense	3,000
	Cash		3,000
Apr. 30	Wages expense	3,000
	Cash		3,000

2.

3.