DateAccount/DescriptionRefDebitCreditCash1111 Jimmy Hendrix funds his new guitar shop. Your job is to record his first six transactions in his ledger.1) On May 5th, Jimmy Hendrix contributes $100,000 for 100,000 shares of common stock in, The Purple Haze, Corporation.2) Jimmy purchases $25,000 of custom guitars from a supplier on account, May 11th.3) Jimmy had hires two friends to work in the store, Jimmy Page and Eric Clapton. They were each paid wages of $1,000 for the hours to date, May 20th.4) Jimmy made a payment toward the guitars he puchased from a supplier for $10,000 on May 22nd.5) Jimmy records the sales for the month of $35,000 on May 30th6) Jimmy makes payments for the following expenses; rent $2,500, utilities $500, and advertising $1,000a) Prepare the entries in a journal and then post to the T accounts.b) Total the Taccounts and prepare a unadjusted trial balance.c) make the two adjusting entries:1) Accrue wages that will be paid the beginning of next month of $2,500.2) Counted the inventory of guitars on hand and valued at $15,000. The difference should be assumed matched to the sales. That should be recorded as COGS.d) prepare adjusted trial balance based on prior two adjustments.e) Prepare an Income Statementf) Prepare a Balance Sheet

Name: DateAccount/DescriptionRefDebitCreditCash1111 Jimmy Hendrix funds his
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Description: DateAccount/DescriptionRefDebitCreditCash1111 Jimmy Hendrix funds his new guitar shop. Your job is to record his first six transactions in his ledger.1) On May 5th, Jimmy Hendrix contributes $100,000 for 100,000 shares of common stock in, The Purple

Business

Accounting

a) Prepare the entries in a journal and then post to the T accounts. b) Total the T accounts and prepare a unadjusted trial balance. c) make the two adjusting entries: 1) Accrue wages that will be paid the beginning of next month of $2,500. 2) Counted the inventory of guitars on hand and valued at $15,000. The difference should be assumed matched to the sales. That should be recorded as COGS. d) prepare adjusted trial balance based on prior two adjustments.

a) Prepare the entries in a journal and then post to the T accounts. b) Total the T accounts and prepare a unadjusted trial balance. c) make the two adjusting entries: 1) Accrue wages that will be paid the beginning of next month of $2,500. 2) Counted the inventory of guitars on hand and valued at $15,000. The difference should be assumed matched to the sales. That should be recorded as COGS. d) prepare adjusted trial balance based on prior two adjustments.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 37P

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