Reference no: EM131624107

Problem - Manually prepare the journal entries for the assignment using the attached template and chart of accounts.

Accrual based accounting

Company Name: Pit Bull Sings T-Shirt

The first transaction on August 1 of $100,000 is an investment by the owner of cash into the business.

Assume the shipping expenses are FOB shipping point

Prepare journal entries. Be sure all dates agree with the problem and are not today's date

• AUG 1, 2015 - Purchased T-shirts (BI= 0, other assets, inventory) from Arotek. Bought 1950 shirts at $3.846 each. Round to nearest dollar. Arotek, vendor, terms are 1/10, n/30.
• AUG 4, 2015 - At Arotek's request, Pit Bull Sings paid $200 cash to Sheng Freight for freight expenses on the August 1.
• AUG 5, 2015 - Sold merchandise to Lair Corp. 1040 T-shirts at $5.00 each. Lair Corporation, customer, is given credit terms to 2/10, n/60, FOB destination. The merchandise had cost of $3.846. Round to nearest dollar.
• AUG 8, 2015 - Purchased Specialized T-shirts from Waters Corporation. Bought 1000 shirts at $4.50 each. Waters Corporation, vendor, terms are 1/10, n/45.
• AUG 9, 2015- Pay Arotek Company for the shirts purchased on AUG 1. Round to nearest dollar.

Attachment:- Template.rar