Question

Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:

Jan.		1		Issued common stock in exchange for $107,000 cash.
		2		Purchased inventory on account for $42,000 (the perpetual inventory system is used).
		4		Paid an insurance company $3,240 for a one-year insurance policy. Prepaid insurance was debited for the entire amount.
		10		Sold merchandise on account for $12,700. The cost of the merchandise was $7,700.
		15		Borrowed $37,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.
		20		Paid employees $6,700 salaries for the first half of the month.
		22		Sold merchandise for $10,700 cash. The cost of the merchandise was $6,700.
		24		Paid $15,700 to suppliers for the merchandise purchased on January 2.
		26		Collected $6,350 on account from customers.
		28		Paid $1,100 to the local utility company for January gas and electricity.
		30		Paid $4,700 rent for the building. $2,350 was for January rent, and $2,350 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts.

Post the transactions into the appropriate T-accounts. (Enter the date of the transaction in the column next to the amount.)

Cash              Accounts Receivable Beg. bal.                             Beg. bal.               End. bal.                             End. bal.               Inventory              Prepaid Insurance Beg. bal.                             Beg. bal.               End. bal.                             End. bal.               Prepaid Rent         Accounts Payable Beg. bal.                             Beg. bal.               End. bal.                             End. bal.               Notes Payable             Common Stock Beg. bal.                             Beg. bal.               End. bal.                             End. bal.               Sales Revenue             Cost of Goods Sold Beg. bal.                             Beg. bal.               End. bal.                             End. bal.               Salaries Expense          Rent Expense Beg. bal.                             Beg. bal.               End. bal.                             End. bal.               Utilities Expense Beg. bal.               End. bal.

Answer 1

T-accounts are as prepared below:

Cash
Particulars	Amount	Particulars	Amount
Jan-01	107,000	Jan-04	3,240
Jan-15	37,000	Jan-20	6,700
Jan-22	10,700	Jan-24	15,700
Jan-26	6,350	Jan-28	1,100
		Jan-30	4,700
	161,050		31,440
Ending Balance	129,610
Merchandise Inventory
Particulars	Amount	Particulars	Amount
Jan-02	42,000	Jan-10	7,700
		Jan-22	6,700
	42,000		14,400
Ending Balance	27,600
Prepaid insurance
Particulars	Amount	Particulars	Amount
Jan-04	3,240
	3,240		0
Ending Balance	3,240
Account Receivable
Particulars	Amount	Particulars	Amount
Jan-10	12,700	Jan-26	6,350
	12,700		6,350
Ending Balance	6,350
Prepaid rent
Particulars	Amount	Particulars	Amount
Jan-30	2,350
Ending Balance	2,350
Accounts Payable
Particulars	Amount	Particulars	Amount
Jan-24	15,700	Jan-02	42,000
	15,700		42,000
		Ending Balance	26,300
Common Stock
Particulars	Amount	Particulars	Amount
		Jan-01	107,000
		Ending Balance	107,000
Sales Revenue
Particulars	Amount	Particulars	Amount
		Jan-10	12,700
		Jan-22	10,700
			23,400
		Ending Balance	23,400
Cost of goods sold
Particulars	Amount	Particulars	Amount
Jan-10	7,700
Jan-22	6,700
Ending Balance	14,400
Note Payable
Particulars	Amount	Particulars	Amount
		Jan-15	37,000
		Ending Balance	37,000
Salaries and Wages Expense
Particulars	Amount	Particulars	Amount
Jan-20	6,700
Ending Balance	6,700
Gas and Electricity Expense
Particulars	Amount	Particulars	Amount
Jan-28	1,100
Ending Balance	1,100
Rent Expense
Particulars	Amount	Particulars	Amount
Jan-30	2,350
Ending Balance	2,350