Answer to Question #216132 in Accounting for zuby

Question

1. Kevin deposits $500 of his own money into the company’s checking account.

2. Kevin signs a note payable in the amount of $1,000 from Bank. The note is due in one year.

3. KKCDK (Kevin’s Kool CD Kopies) purchases a CD duplicator , which can copy seven CDs at one time. The cost is $1,300 and he pays cash.

4. KKCDK purchases 500 blank CDs for $150 on account.

5. KKCDK pays $20 cash for flyers to advertise.

6. KKCDK quickly catches on with the student groups on campus. KKCDK sells 400 CDs to various groups for $0.80 per CD. KKCDK receives cash payment for 300 of the CDs and the student groups owe for the other 100 CDs.

7. KKCDK pays $100 on its accounts payable.

8. KKCDK receives $40 in advance to copy 50 CDs for a student group. He will not begin work on the project until Feb

9. KKCDK incurs $40 in tax expense. The taxes will be paid in Feb

A. Prepare journal entries for the above events if needed.

B. prepare T-accounts.

C. Prepare an unadjusted trial balance for KKCDK for January

Answer 1

Journal entries

T-Accounts

I) Unadjusted trial balance

Accounts Debit Credit

Cash $380 $80

Supplies $135

Tax expense $80

Unearned revenue $20

Accounts payable $135

Accounts receivable $360

J) Adjusting entries

KKCDK is owed $40 for the CDs not sold