The following transactions occurred at the Daisy King Ice CreamCompany.
- Started business by issuing 10,000 shares of common stock for$37,000.
- Signed a franchise agreement to pay royalties of 5% ofsales.
- Leased a building for three years at $670 per month and paidsix months' rent in advance.
- Purchased equipment for $7,100, paying $4,000 down and signinga two-year, 8% note for the balance.
- Purchased $3,500 of supplies on account.
- Recorded cash sales of $2,500 for the first week.
- Paid weekly salaries and wages, $1,170.
- Paid for supplies purchased in item (5).
- Paid royalties due on first week's sales.
- Recorded depreciation on equipment, $100.
Required:
Prepare journal entries to record each of the transactions listedabove.
1
Started business by issuing 10,000 shares of common stock for$37,000.
2
Signed a franchise agreement to pay royalties of 5% ofsales.
3
Leased a building for three years at $670 per month and paid sixmonths' rent in advance.
4
Purchased equipment for $7,100, paying $4,000 down and signing atwo-year, 8% note for the balance.
5
Purchased $3,500 of supplies on account.
6
Recorded cash sales of $2,500 for the first week.
7
Paid weekly salaries and wages, $1,170.
8
Paid for supplies purchased in item (5).
9
Paid royalties due on first week's sales.
10
Recorded depreciation on equipment, $100.
