Additional_Practice_Problem_for_Transaction_Recording -...

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Record the following transactions in T-accounts. Then develop the balance sheet and income statement. November 1 st 1. Harvest Wine Shop was created with an initial investment of $50,000 from its sole owner, Fred. Dr-Cash $50k Cr-Capital (common stock) $50k 2. Fred paid $4,800 to his landlord to rent a building in which he sold his wine. Dr-Prepaid rent $4800 Cr-Cash $4800 3. Purchased shelves and coolers to store his wine. The cost totaled of $40,000. The machine was financed through a $5,000 down payment of cash and a $35,000 loan from a bank. The loan terms include 5% interest rate and the life of the loan is 9 months). Dr-Equipment $40k Cr-Cash $5k Cr-Note Payable $35k 4. Fred then purchased $10,000 of wine from area wineries and plans to pay the wineries later in the month. Dr-Inventory $10k Cr-Accounts Payable $10k 5. Paid $400 to purchase office supplies from Office Depot. Dr-Supplies $400 Cr-Cash $400 6. Harvest Wine sold $1,000 worth of wine to a local restaurant at a sales price of $2,000. The
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Additional_Practice_Problem_for_Transaction_Recording -...

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