question archive Lesters’ Jewelry company completed these transactions during November of the current year: Nov
Lesters’ Jewelry company completed these transactions during November of the current year: Nov
Subject:FinancePrice:4.87 Bought7
Lesters’ Jewelry company completed these transactions during November of the current year:
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Nov. 1 |
Began a the business by investing $3,000 in cash and |
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Precious stones with a $10,000 fair value. |
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Nov. 2 |
Purchased on credit office equipment, $1,500, and office supplies, $500. |
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Nov. 4 |
Completed a custom braclet for client and immediately received |
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a payment of $1,200 cash. |
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Nov. 8 Nov. 9 |
Completed a necklace for a client and charged his account $3,400. Hired a new employee to begin work on Nov 20. |
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Nov. 10 |
Paid for the items purchased on credit on November 2. |
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Nov. 14 |
Paid the annual $1,200 premium on an insurance policy. |
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Nov. 18 |
Received payment in full from the client of November 8. |
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Nov. 23 |
Took out a bank loan of $20,000. |
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Nov. 27 |
Lester withdrew $250 cash from the business to pay |
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Nov 29 |
personal expenses. Paid employees $800 for the months wages. |
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Nov. 30 |
Paid the November utility bills, $225. |
Required: Prepare journal entries for the above transactions.
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Answer:
| Date | General Journal | Debit | Credit |
| Nov 1 | Cash | 3000 | |
| Inventory | 10000 | ||
| Lester's Capital | 13000 | ||
| (Capital introduced) | |||
| Nov 2 | Office Equipment | 1500 | |
| Office Supplies | 500 | ||
| Accounts Payable | 2000 | ||
| (purchased on credit) | |||
| Nov 4 | Cash | 1200 | |
| Revenue | 1200 | ||
| (Cash collected for braclet) | |||
| Nov 8 | Accounts Receivable | 3400 | |
| Revenue | 3400 | ||
| (Necklace cash receivable) | |||
| Nov 9 | No Entry | ||
| Nov 10 | Accounts Payable | 2000 | |
| Cash | 2000 | ||
| ( Cash paid for nov 2 purchase) | |||
| Nov 14 | Prepaid Insurance | 1200 | |
| Cash | 1200 | ||
| (paid the insurance policy) | |||
| Nov 18 | Cash | 3400 | |
| Accounts Receivable | 3400 | ||
| (Cash received for nov 8 ) | |||
| Nov 23 | Cash | 20000 | |
| Bank Loan | 20000 | ||
| (Bank loan taken) | |||
| Nov 27 | Lester's Drawings | 250 | |
| Cash | 250 | ||
| (Cash withdrew from business for personal use) | |||
| Nov 29 | Wages Expense | 800 | |
| Cash | 800 | ||
| (paid wages) | |||
| Nov 30 | Utility Expense | 225 | |
| Cash | 225 | ||
| (paid utility bill) |
