Question

Part 1 – Instruction - You will prepare the following in excel: 1. General Journal

a. Journal entries – full proper journal entry with descriptions

b. Post entries to ledger

2. Ledger – T accounts a. Show beginning balance b. Post all activity – make sure to include reference to journal entry c. Show ending balance

3. Trial Balance a. Unadjusted Trial Balance

The following transaction occurred for Agape Pet Supply Co. during the period ended 12/31/x1.

They provide services to customers and sell products.

March 1 The company was formed with$1,000,000 share authorized - $1 par value.

March 20 The company issued stock for $150,000 at par value.

April 7 Purchased supplies for $4,000 on account.

April 28 Paid $1,200 to get a patent on their special pet leases.

May 10 Purchased inventory for $60,000 on account. The company uses the FIFO method under a perpetual system to account for inventory

May 19 Purchase equipment with a Note Payable of $30,000 due in 5 years. The company used the straight-line method for depreciation.

May 31 Purchase two parcels of land for 55,000 - Parcel A was $30,000 and Parcel B was $25,000. It was thought they would use this land to build a warehouse.

June 1 Purchased two years of Insurance for $6,000. June 26 Provided goods to a customer worth $18,000. Inventory had a cost of $9,200. The customer paid $8,000 cash and rest on account.

July 7 Provided goods of $3,000 to a customer for cash. Inventory had a cost of $1,400. July 26 Paid employee wages of $4,000. August 9 Customer paid $5,000 for goods to be provided in the future.

August 17 Received $12,000 on account for goods provided. Inventory had a cost of $6,700.

Sept 10 Invested $10,000 of excess cash in securities – intend to hold them for several years.

Sept 21 Collected $5,000 from a customer that owed you money for goods previously provided.

Sept 29 It was determined that the land previously purchase to build a warehouse. They sell parcel A for $45,000. Parcel B they decide to hold as an investment.

Oct 1 Paid rent for the period of $12,000 for the next year.

Oct 19 Received Interest income on investments of $850 Nov 8 Received a utility bill for $2,000 for utility services received. (Paid on account)

Nov 27 Paid $2,500 of the amount owed for supplies.

Dec 15 Paid dividend of $3,000.

Answer 1

a)

b)

c)