514_633891550189798993_FluffYear1

514_633891550189798993_FluffYear1 - Fluff Year 1 1 Cash...

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Fluff Year 1 1 Cash 30,000 Common Stock 20,000 Note Payable- Uncle Mike 10,000 To record set up of business. 2 Inventory 24,000 Cash 24,000 To record purchase of 8 Fluffs @ $3,000. 3 Cash 35,000 Sales 35,000 To record sale of 5 Fluffs @ $7,000. 4 Cost of Goods Sold 15,000 Inventory 15,000 To record cost of inventory sold. (5@$3,000) 5 Security Deposit 2,000 Cash 2,000 To record payment of security deposit. 6 Advertising Expense 3,000 Cash 3,000 To record payment of advertising. 7 Rent Expense 12,000 Cash 12,000 To record payment of rent. 8 Land 40,000 Common Stock 40,000 To record exchange of land for 200 shares of common stock on August 1st. 9 Interest Expense 1,000 Cash 1,000 To record payment of interest on note. 10 Tax Expense 1,200 Cash 600 Taxes Payable 600 To record taxes for year 1. 11 Sales 35,000 Cost of Goods Sold 15,000 Rent Expense 12,000 Advertising Expense 3,000 Interest Expense 1,000 Tax Expense 1,200 Retained Earnings 2,800 To close books
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Fluff Yr 1 Assets = Liabilities
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This note was uploaded on 09/12/2010 for the course ACCT 101 taught by Professor Drkirch during the Spring '10 term at Ohio University- Athens.

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514_633891550189798993_FluffYear1 - Fluff Year 1 1 Cash...

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