ACCT 401L- lab assignment _2 with solution

ACCT 401L- lab assignment _2 with solution - 1 ACCT 401L...

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Unformatted text preview: 1 ACCT 401L Lab Assignment #2 Name____________________ Date 1/21/11 Case facts: Emerald Clothing Inc. sells kids’ clothing and accessories. The following transactions occurred during December 2011 for Emerald Clothing. December 1 Logan invested $60,000 in the corporation and was issued 6,000 shares of common stock. December 1 Paid $24,000 in advance for one year’s rent on the store building. December 1 Purchased furniture from Cozy Furniture for $12,000 cash. The furniture has a useful life of five years with no salvage value at the end of that period. December 1 Subleased a portion of the building to a jewelry store. Received $1,000 in advance for the first two months’ rent beginning on December 1. December 3 Purchased $60,000 of clothing inventory on account from the Cutie Pie Wholesale Clothing Company. December 6 Purchased $2,000 of supplies for cash. At the end of December, $1,200 of supplies remain. December 8 Borrowed $40,000 from a local bank and signed two notes. The first note for $10,000 requires payment of principal and 10% interest in six months. The second note for $30,000 requires the payment of principal in two years. Interest at 10% is payable each year on December 8, 2012, and December 8, 2013. December 9 Sold clothing on account to BES for $3,500. The clothing cost $2,000....
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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ACCT 401L- lab assignment _2 with solution - 1 ACCT 401L...

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