Prepare journal entries for these transactions

Assignment Help Business Economics

Reference no: EM131253452

Keith ledger started a business, Gotham Games, in January 2016. The transactions that occurred in January are listed below.

1/1/16- Keith opened a bank account in the name of his new business, Gotham Games, by making a deposit of $75,000 cash in exchange for 10,000 shares of $0.01 par value common stock.

1/3/16- The company paid the first month rent in the amount of $1,900 for the store space he was using.

1/3/16- The company bought a computer and cash register from Fry's for $6000 and paid cash

1/3/16- The company purchased and installed store fixtures for $10,000. The company paid $7,500 in cash and signed a 1 year note for the balance that carries a 7.82% interest rate (hint: assume a 365 day year).

1/5/16- The company purchased various board games and collectible card games for $20,000 on trade credit.

1/20/16- The company paid cash for the initial electric bill, in the amount of $250.

1/24/16- The company collected $750 in cash on the credit sales recorded on 1/15.

1/29/16- The company paid $10,000 to its collectible card game vendors for purchases made earlier in the month.

1/31/16- The company recorded sales for the second half of the month. Cash sales were $5,000 and credit sales were $4,000. The cost of the inventory sold was $5,850.

Required:

a) Prepare journal entries for these transactions.

b) Post them to T-accounts.

c) Prepare the Trial Balance as of January 31,2016.

d) Calculate Gotham Games' gross margin for January 2016 ($ and %).

Reference no: EM131253452

Questions Cloud

Have each member of your team access six different web sites : Have each member of your team access six different Web sites and summarize their findings in terms of the existence of data privacy policy statements.

Discuss what medications are used to treat the disease : Discuss what medications are used to treat this disease and who should be taking them? What diseases are patients at risk for when they have ather-osclerosis?

What is accounting information systems : In 200 words or more what is "Accounting Information Systems (AIS)?" Discuss why you should study Accounting Information Systems and what impact AIS has on the accounting profession

Define data fitting and approximating a given function : What are basis functions? Does an approximant v(x) that is written as a linear combination of basis functions have to be linear in x?

Prepare journal entries for these transactions : Keith ledger started a business, Gotham Games, in January 2016. The transactions that occurred in January are listed below. Keith opened a bank account in the name of his new business, Gotham Games, by making a deposit of $75,000 cash in exchange for..

Find recent examples of cyberterrorism around the world : Do research on the Web to find recent examples of cyberterrorism around the world. - Is it your opinion that cyberterrorism has reached the level of a serious international problem? Why or why not?

Determine the amount and recipient of the partner bonus : Sharpe has a capital balance of $92,000 after adjusting assets to fair market value. Marler contributes $49,000 to receive a 35% interest in a new partnership with Sharpe. Determine the amount and recipient of the partner bonus.

Prepare a set of slides that documents your position : Do research to document its position on the NSA's collection of phone call and Internet communications data. Do you agree with EFF's position?- Prepare a set of slides that documents your position and that of the EFF.

How much net income should be distributed to jack : Steve Jack and Chelsy Bernard formed a partnership, dividing income as follows: Annual salary allowance to Jack of $50,000. Interest of 9% on each partner's capital balance on January 1. Any remaining net income divided equally. Bernard and Jack had ..

User Account

All Pages