ACG 3113 Practice Set 2 1 answer below »

ACG 3113 Practice Set 2

The Gremlin Ice Cream Company started business July 1, 2000. Gremlin uses the perpetual inventory system.

Required: Using Excel, prepare general journal entries in good form for only the transactions listed below (Explanations are not necessary):

July 1 2000 Issued 5,000 shares of $1 par value common stock for $95,000 cash.

July 1 Rented building space, paying three month s rent of $24,000 in advance. (Use a real or permanent account for the building rent).

July 6 Rented equipment at a cost of $600 per month, paying $6,000 upon signing the rental agreement. (Use a nominal or temporary account for the equipment rental)

July 7 Purchased ice cream on account for $2,000.

July 8 Purchased supplies on account for $560. (Use a real or permanent account for the supplies)

July 12 Recorded cash sales in the amount of $2,500. The ice cream sold cost $800.

July 14 Paid wages of $1,800.

July 15 Paid two-year insurance premium of $2,900. (Use a real or permanent account for the insurance). The insurance is effective today.

July 16 Recorded sales on account of $2,600. The ice cream sold cost $675.

July 17 Paid for the ice cream purchased on the 7th and the supplies purchased on the 8th.

July 18 Purchased store equipment for $45,000. Paid $12,000 in cash and signed a 2-year 10% Note for the remainder.

July 21 Received an invoice for the month s utilities of $650. The bill is due on August 12th and will be paid then.

July 27 Received a cash payment of $2,600 for goods sold on account on July 16.

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