Homework__3

Homework__3 - Chapter 3 Homework Problems P3-2 Recording...

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Chapter 3 Homework Problems P3-2 Recording Journal Entries Charles Badurski organized a new company, CollegeCaps, Inc. The company operates a small store in an area mall and specializes in baseball caps with logos printed on them. Charles believes that his target market is college and high school students. You have been hired to record the transactions occurring in the first two weeks of operations. May 1 Issued 1,000 shares of stock to investors for $21 per share. May 1 Borrowed $35,000 from the bank to provide additional funding to begin operations; the note is due in two years. May 1 Paid $840 for the current month's rent and another $840 for next month's rent. May 1 Paid $1,680 for a one-year fire insurance policy (recorded as a prepaid expense). May 3 Purchased furniture and fixtures for the store for $10,500 on account. The amount is due within 30 days. May 4 Purchased a supply of The University of Texas, Southern Methodist University, and Michigan State University baseball caps for the store for $1,260 cash. May 5 Placed advertisements in local college newspapers for a total of $175 cash. May 9 Sold baseball caps totaling $280, half of which was charged on account. The cost of the baseball caps sold was $105. May 10 Made full payment for the furniture and fixtures purchased on account on May 3. May 14 Received $35 from a customer on account. Required: For each of the transactions, prepare journal entries. Date General Journal Debit Credit May 1 May 1 May 1 May 1
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May 3 May 4 May 5 May 9 May 9 May 10 May 14 P3-1 Recording Nonquantitative Journal Entries The following list includes a series of accounts for Choudhury Corporation that has been operating for three years. These accounts are listed and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no journal entry is needed, use
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This homework help was uploaded on 04/21/2008 for the course AEM 2210 taught by Professor Little,j. during the Fall '07 term at Cornell.

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Homework__3 - Chapter 3 Homework Problems P3-2 Recording...

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