Homework#1 - the balance(e Purchased $1,800 of supplies on...

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The submission date is on Wednesday, February 8, 2011. HA # 1. Daisy King Ice Cream Company During May, the activities of Daisy King Ice Cream Company while the company was being organized included the following events: (a.) Started business by issuing 10,000 shares of capital stock for $20,000. (b.) Signed a franchise agreement to pay royalties of 5% of sales. (c.) Leased a building for three years at $500 per month and paid six months' rent in advance. (d.) Purchased equipment for $5,400, paying $1,000 down and signing a two-year, 10% note for
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Unformatted text preview: the balance. (e.) Purchased $1,800 of supplies on account. (f.) Recorded cash sales of $800 for the first week. (g.) Paid weekly wages, $320. (h.) Paid for supplies purchased in item (e). (i.) Paid royalties due on first week's sales. (j.) Recorded depreciation on equipment, $50. Required: 1.Prepare journal entries to record the above transactions. If an entry is not required, state "No Entry." 2.Post each transaction to appropriate ledger accounts (use T account format) 3.Prepare a trial balance dated May 31, 2010...
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