In: Accounting
Question II :
The Water Bottle Company was incorporated on October 1, 2016. The following transactions occurred during November:
Transaction Number Date
1) 1-Nov Issue additional common stock for $4500---------------------4,500
2) 1-Nov Purchase 800 water bottles @ $10 each on account------------------- 8,000
3A) 3-Nov Sell 300 water bottles @ $30 each for cash----------------------------- 9,000
3B) 3-Nov Same…. COGS entry 300 water bottles @ 10 each -----------------3,000
4A ) 10-Nov Sell 400 water bottles @ $40 each on account----------------------------------------------- 16,000
4B) 10-Nov Same…COGS entry 400 water bottles @$10 each----------- 4,000
5) 15-Nov Pay employees for work performed ($800 from October and $2400 November) ----------3,200
6) 15-Nov Pay $450 cash for advertising to be run in current month -----------------------------------------450
7A) 17-Nov Remaining goods from prepayment customer in October have been delivered (10 bottles @$30) -------------300
7B) 17-Nov Same…remaining goods from prepayment are delivered (COGS entry) ----------------------------------100
8) 27-Nov The Water Bottle Company makes a partial payment for the water bottles purchased Nov 1 - pay $500------------- 500
9) 28-Nov Pay $220 in utlities for current month use --------220
10) 30-Nov A customer paid in advance for 150 water bottles @ $30 each to be delivered in the future ---------4,500
11) 30-Nov Receive full payment from customer who bought on account on Nov 10 --------------------16,000
12) 30-Nov Pay cash dividends to your shareholders in the amount of $600. ------------------------------600
Adjusting Entries for November:
a) 30-Nov Adjust for use of prepaid rent 1 month
b) 30-Nov Adjust for use of insurance policy 1 month
c) 30-Nov Adjust for depreciation of equipment ($140 a month given)
d) 30-Nov Adjust for $1200 of salaries earned but not paid by month end
e) 30-Nov Adjust for interest on the loan 5% annual rate .
Deliverables:
Record all November transactions in the Financial Statement Impact Template
Record all November adjusting entries in the Financial Statement Impact Template
Create November Financial Statements
Record all closing entries in the Financial Statement Impact Template for November to set up for the following month .
Journal entries: | ||||||||
Sl no. | Date | Account titles and explanation | Debit | Credit | ||||
1 | Nov 1. | Cash | 4500 | |||||
Common stock | 4500 | |||||||
(Issued additional shares for cash) | ||||||||
2 | Nov 1. | Merchandise inventory | 8000 | |||||
Accounts payable | 8000 | |||||||
(Purchase on account) | ||||||||
3A | Nov 3. | Cash | 9000 | |||||
Sales revenue | 9000 | |||||||
(Goods sold on cash) | ||||||||
3B | Nov 3. | Cost of goods sold | 3000 | |||||
Merchandise inventory | 3000 | |||||||
(Cost of above sales recorded) | ||||||||
4A | Nov 10. | Accounts receivable | 16000 | |||||
Sales revenue | 16000 | |||||||
(Sold goods on credit) | ||||||||
4B | Nov 10. | Cost of goods sold | 4000 | |||||
Merchandise inventory | 4000 | |||||||
(Cost of above sales recorded) | ||||||||
5 | Nov 15. | Salaries payable | 800 | |||||
Salaries expense | 2400 | |||||||
Cash | 3200 | |||||||
(Salaries paid) | ||||||||
6 | Nov 15. | Advertising expense | 450 | |||||
Cash | 450 | |||||||
(Cash paid for advertising) | ||||||||
7A | Nov 17. | Unearned revenue | 300 | |||||
Sales revenue | 300 | |||||||
(Goods sold to prepaid customers) | ||||||||
7B | Nov 17. | Cost of goods sold | 100 | |||||
Merchandise inventory | 100 | |||||||
(Cost of above sales recorded) | ||||||||
8 | Nov 27. | Accounts payable | 500 | |||||
Cash | 500 | |||||||
(Paid for inventory purchased partially) | ||||||||
9 | Nov 28. | Utility expense | 220 | |||||
Cash | 220 | |||||||
(Utilities paid for cash) | ||||||||
10 | Nov 30. | Cash | 4500 | |||||
Unearned revenue | 4500 | |||||||
(Received advance from customer) | ||||||||
11 | Nov 30. | Cash | 16000 | |||||
Accounts receivable | 16000 | |||||||
(Received from customer in full) | ||||||||
12 | Nov 30. | Cash dividend payable | 600 | |||||
Cash | 600 | |||||||
(Dividend paid) | ||||||||
Adjusting entries: | ||||||||
Sl no. | Date | Account titles and explanation | Debit | Credit | ||||
a) | Nov 30. | Please provide October transactions | ||||||
b) | Nov 30. | Please provide October transactions | ||||||
c) | Nov 30. | Depreciation expense | 140 | |||||
Accumulated depreciation | 140 | |||||||
(Depreciation recorded) | ||||||||
d) | Nov 30. | Salaries expense | 1200 | |||||
Salaries payable | 1200 | |||||||
(salaries earned but not paid) | ||||||||
e) | Nov 30. | Please provide October transactions | ||||||
Closing entries: | ||||||||
Please provide October transactions in order to pass closing entries | ||||||||