Reference no: EM131212192
A young entrepreneur with a passion for shoes has a new start-up, Shoes for You, Inc. with a calendar year end of December 31, 2016. Complete the Journal Entries for all transactions listed for Shoes for You, Inc. for the first quarter ending March 31, 2016. Be sure to include a date for each journal entry.
You do not need to provide explanations for the Journal Entries. The first Journal Entry has been done for you. (16 points- graded for accuracy and format, including Excel spreadsheet links.)
Transactions:
1 1/2/2016 Issued 10,000 shares of stock to investors consisting of friends and family. Shares were sold at par value of $10 each.
2 1/15/2016 Received a loan of $300,000 from the bank.
3 2/1/2016 Puchased a building for office and retail space for $240,000. They paid 20% down in cash and signed a long-term mortgage note for the rest.
4 2/1/2016 Paid $1,200 in cash to purchase display equipment for the shoe showroom.
5 2/1/2016 The company purchased a six month insurance policy and paid cash in advance of $1,170.
6 2/3/2016 Purchased shoe inventory on account for $92,500.
7 2/26/2016 Recorded shoe sales to a local basketball team, sold on account for $3,900.
8 3/1/2016 Paid $60,000 of the Account Payable for the shoe inventory to the supplier.
9 3/27/2016 The company received a cash payment in full from the local basketball team.
10 3/31/2016 Shoe sales in cash for February and March were $36,700.
11 3/31/2016 Cost of Goods Sold for the February and March sales (cash and credit) were $22,330.
12 3/31/2016 Salaries and wages expense for February and March combined was $13,500. Of this total, $12,000 was paid in cash and $1,500 will be paid in April.
13 3/31/2016 The company records depreciation monthly. The building has a useful economic life of 40 years and the company uses the straight line depreciation method.
14 3/31/2016 The company records depreciation monthly. The display equipment has a useful economic life of 10 years and the company uses the straight line depreciation method.
15 3/31/2016 Insurance expense for Feb and March is 1/3 of the amount paid in advance.
Attachment:- PAssasie-Gyimah mod2 assign.xlsx