Answer to Question #213141 in Accounting for zuby

Question

1.

Heather deposits $1,000 of her own money into Sew Cool’s checking account.

2.

Sew Cool purchases equipment for $1,000. The company signs a note payable for this purchase.

3.

Sew Cool purchases $1,000 in sewing supplies and material in cash.

4.

Sew Cool gives Heather’s parents a check for $80 for rent and utilities.

5.

Heather sews and sells twenty dresses during the month. Each dress has a price of $60. Cash is received for twelve of the dresses, with customers owing for the remaining eight.

6.

The dresses sold above cost $35 each to make.

7.

Sew Cool purchases advertising for $50 cash.

8.

Sew Cool pays Heather a cash dividend of $10 cash.

9.

Sew Cool’s taxes, paid in cash, amount to $87.

1.

Prepare journal entries for the above transactions.

2.

Prepare T-accounts for each account used.

3.

Prepare a trial balance for June

Answer 1

Part 1: Journal entries

Part 2: T-accounts

Part 3: Trial balance