Reference no: EM133185097

Question - The owners, Louisa and Jason Rogers, have very limited accounting knowledge and their niece has stepped in to perform the bookkeeping function; however, there are several transactions that she is unsure how to handle. You analyze the transactions detailed and journal entries for the current-year financial records; please provide a detailed explanation for each entry.

1. On January 15, 2022, a customer gave a deposit of $600 for a wedding cake for a wedding on February 12, 2022.

2. The balance of $900 is to be paid on the day of the wedding. 2. On January 23, 2022, Desserts and More purchased and paid for $2,300 in sugar (inventory account used) from Sweet Shop. Due to space limitations in the pantry, Sweet Shop agreed to hold the sugar and deliver it as needed. Ownership remains with Desserts and More.

3. On January 31, 2022 Desserts and More Ltd. received its annual insurance policy for the period February 1, 2022, to January 31, 2023. The full amount of $3,000 is paid on January 31, 2022.

4. On January 31, 2022, the January telephone bill was received and paid for in the amount of $150.

5. On February 1, 2022, the owners interviewed and hired a new baker to start on March 1st. The baker will work 38 hours a week and be paid $17.00/hour.

6. On February 15, 2022, the cash sales for the day totalled $500

Each transaction is logically analyzed to determine if an accounting entry is required through the application of accounting element definitions and the accounting equation. Required entries are properly formatted with a date, the correct accounts and debit/credit amounts. The explanation includes the reason that an entry was or was not required. Explanations are free from abbreviations, slang, spelling, grammar and incorrect word usage errors.