Question

Halogen Laminated Products Company began business on January 1, 2018. During January, the following transactions occurred:

Jan.		1		Issued common stock in exchange for $113,000 cash.
		2		Purchased inventory on account for $32,000 (the perpetual inventory system is used).
		4		Paid an insurance company $2,040 for a one-year insurance policy.
		10		Sold merchandise on account for $11,700. The cost of the merchandise was $6,700.
		15		Borrowed $27,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.
		20		Paid employees $5,700 salaries and wages for the first half of the month.
		22		Sold merchandise for $9,700 cash. The cost of the merchandise was $5,700.
		24		Paid $14,700 to suppliers for the merchandise purchased on January 2.
		26		Collected $5,850 on account from customers.
		28		Paid $1,100 to the local utility company for January gas and electricity.
		30		Paid $3,700 rent for the building. $1,850 was for January rent, and $1,850 for February rent.

Required:
1. Prepare general journal entries to record each transaction.
2. Post the transactions into the appropriate T-accounts.
3. Prepare an unadjusted trial balance as of January 30, 2018.

Answer 1

1. Halogen Laminated Products Company

Journal Entries

for the month January,2018

Date	Accounts title	Debit	Credit
January 1	Cash	113,000
	Common Stock		113,000
January 2	Inventory	32,000
	Accounts Payable		32,000
January 4	Prepaid Insurance	2,040
	Cash		2,040
January 10	Accounts Receivable	11,700
	Sales		11,700
	Cost of Goods Sold	6,700
	Inventory		6,700
January 15	Cash	27,000
	Notes Payable		27,000
January 20	Salaries & Wages Expenses	5,700
	Cash		5,700
January 22	Cash	9,700
	Sales		9,700
	Cost of Goods Sold	5,700
	Inventory		5,700
January 24	Accounts Payable	14,700
	Cash		14,700
January 26	Cash	5,850
	Accounts Receivable		5,850
January 28	Gas & electricity Expenses	1,100
	Cash		1,100
January 30	Rent Expenses	1,850
	Prepaid Rent	1,850
	Cash		3,700

2. Posting into T - Accounts:-

Cash

Date	Items	Amount	Date	Items	Amount
January 1	Common Stock	113,000	4	Prepaid Insurance	2,040
15	Notes Payable	27,000	20	Salaries & wages Expenses	5,700
22	Sales	9,700	24	Accounts Payable	14,700
26	Accounts Receivable	5,850	28	Gas & electricity Expenses	1,100
			30	Rent Expenses	1,850
			30	Prepaid Rent	1,850
			31	Balance	128,310
	Total	155,550		Total	155,550
	​​​​​​Closing Balance	128,310

Common Stock

31	Balance	113,000	January 1	Cash	113,000
	Total	113,000		Total	113,000
			31	Closing Balance	113,000

Inventory

January 2	Accounts Payable	32,000	10	Cost of Goods Sold	6,700
			22	Cost of Goods Sold	5,700
			31	Balance	19,600
	Total	32,000		Total	32,000
31	Closing Balance	19,600

Accounts Payable

January 24	Cash	14,700	2	Inventory	32,000
31	Balance	17,300
	Total	32,000		Total	32,000
		​​​​​​	31	Closing Balance	17,300

Prepaid Insurance

4	Cash	2,040	31	Balance	2,040
	Total	2,040		Total	2,040
	Closing Balance	2,040

Accounts Receivable

10	Sales	11,700	26	Cash	5,850
			31	Balance	5,850
	Total	11,700		Total	11,700
31	Closing Balance	5,850

Sales

31	Balance	21,400	10	Accounts Receivable	11,700
			22	Cash	9,700
	Total	21,400		Total	21,400
			​​​​​​31	Closing Balance	21,400

Cost of Goods Sold

10	Inventory	6,700	31	Balance	12,400
22	Inventory	5,700
	Total	12,400		Total	12,400
31	Closing Balance	12,400

Notes Payable

31	Balance	27,000	15	Cash	27,000
	Total	27,000		Total	27,000
			31	Closing Balance	27,000

Salaries & wages Expenses

20	Cash	5,700	31	Balance	5,700
	Total	5700		Total	5,700
31	Closing Balance	5,700

Gas & electricity Expenses

28	Cash	1,100	31	Balance	1,100
	Total	1,100		Total	1,100
31		1,100

Rent Expenses

30	Cash	1,850	31	Balance	1,850
	Total	1,850		Total	1,850
31	Closing Balance	1,850

Prepaid Rent

30	Cash	1,850	31	Balance	1,850
	Total	1,850		Total	1,850
31	Closing Balance	1,850

3. Halogen Laminated Products Company

Unadjusted Trial Balance

For the month ended January,2018

Accounts Title	Debit	Credit
Cash	128,310
Inventory	19,600
Accounts Payable		17,300
Common Stock		113,000
Prepaid Insurance	2,040
Accounts Receivable	5,850
Sales		21,400
Cost of Goods Sold	12,400
Notes Payable		27,000
Salaries & wages Expenses	5,700
Gas & electricity Expenses	1,100
Rent Expenses	1,850
Prepaid Rent	1,850
Total	178,700	178,700