The following transactions occurred at the Daisy King Ice Cream Company. Started business by issuing...
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The following transactions occurred at the Daisy King Ice Cream Company. Started business by issuing 10,000 shares of common stock for $40,000. Signed a franchise agreement to pay royalties of 5% of sales. Leased a building for three years at $700 per month and paid six months' rent in advance. Purchased equipment for $7,400, paying $2,000 down and signing a two-year, 10% note for the balance. Purchased $3,800 of supplies on account. Recorded cash sales of $2,800 for the first week. Paid weekly salaries and wages, $1,320. Paid for supplies purchased in item (5). Paid royalties due on first week's sales. Recorded depreciation on equipment, $120. Required: Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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