Reference no: EM133103323

Question - The Ice cream store, Inc. has incurred the following transactions.

1) The ice cream store was formed on October 1,20xx with an investment of 90,000 in cash by owners.

2) Obtained a bank loan and received proceeds of 35,000 on October 2nd. The cash will be used for operations.

3) Purchased equipment  for 25,000 cash on October 2nd.

4) Acquired a building at a cost of 80,000. It was financed by making a 20,000  down payment and obtaining a mortgage for the balance.

5) On October 2, the President of the united states publically tweeted that he will eat our ice cream while entairtaning quests in the White House.

6) On October 4, purchased merchamdise inventory at a cost of 15,000 by paying 5,000 cash and receiving a short-term credit for the remainder.

7) Immediately returned some of the ice cream because some of the flavourrs delevered were not ordered. The cost of the inventory returned was 3,000.

8) Sales of the ice cream for the month totaled 8,000. All sales were for cash. Theice cream cost was 3,500.

9) For all of October, total employee wages and salaries earned were 3,000

10) At the end of October, one month's depreciation on the equipment and building was recognizied 383 for the building and 167 for the equipment.

11) 450 interest expense on the note and mortgage was due and paid on October 31.

Required - Prepare all the journal entries, post them to T- accounts. Prepare an income statement and a balance sheet.