Reference no: EM132479992

a. Noodles issued new shares of common stock for $100,000.

Cash 100,000

Common Stock 100,000

b. Inventory costing $93,068 was purchased, all on account.

Inventory 93,068

Accounts Payable 93,068

c. Noodles had sales of $347,140 (all in cash) at the company-owned restaurants. The cost of the food products sold at the company-owned cafes was $91,890.

Cost of Goods Sold 91,890

Food inventory 91,890

Cash 347,140

Sales Revenue 347,140

d. The company earned royalties and fees from franchisees of $3,785, all on account.

Accounts Receivable 3,785

Royalty Fees Earned 3,785

e. Noodles paid down long-term debt in the amount of $110,065 with cash.

Notes Payable 110,065

Cash 110,065

f. Property and equipment in the amount of $50,420 was purchased. Noodles paid $20,420 in cash and signed a promissory note due in 30 months for $30,000.

Property and equipment 50,420

Cash 20,420

Notes Payable 30,000

g. Noodles received $4,515 cash from franchisees as payment for amounts previously owed.

Cash 4,515

Accounts Receivable 4,515

h. Noodles paid $108,570 in cash for advertising and administrative costs incurred during the year. In addition, wages for restaurant employees was $104,040 in 2013, all paid in cash.

Advertising and administrative expenses 108,570

Wages expense 104,040

Cash 212,610

i. Noodles compensated certain high level executives who worked for the company in 2013 by issuing new shares of Noodles stock worth $6,575 (i.e., Noodles gave them shares of the company instead of giving them a paycheck for services provided during the year).

Wages expense 6,575

Common stock 6,575

j. Noodles paid cash for 2013 pre-opening costs (e.g., site selection, training) of $3,810. In addition, late in the fiscal year, the company paid cash of $1,340 for rental deposits for locations that it did not occupy until 2014.

Pre-opening expenses 3,810

Prepaid rental deposit expenses 1,340

Cash 5,150

k. The company incurred $2,820 in interest expense for 2013, which was fully paid in cash.

Interest expense 2,820

Cash 2,820

l. The company paid $2,775 in cash for shares of its own common stock (i.e., it went to the stock market and bought back shares of its own stock.) This is known as treasury stock. Even though it is part of owners' equity, treasury stock has a normal debit balance because it reduces the amount of common stock outstanding.

Treasury stock 2,775

Cash 2,775

m. Noodles paid vendors $94,288 cash owed for previously delivered supplies.

Accounts Payable 94,288

Cash 94,288

n. Noodles recognized depreciation expense of $21,790. For purposes of this case, depreciation expense reduces property and equipment, net. Next week, we will discuss a separate account called accumulated depreciation.

Depreciation expense - property and equipment 21,790

Accumulated depreciation - property and equipment 21,790

o. Noodles reported income tax expense of $4,765 for 2013. Of this amount, the company made estimated cash payments to the IRS during the year of $3,140 and still owed the balance of $1,625 at year end.

Accrued income tax expense 3,140

Cash 3,140

Question 1: With above data , if starting the trial balance by giving you the correct ending balance of $968 as debit , please help me prepare the trial balance.