Transactions:
a. received 4 shareholders contributions totaling $16,000 cashto form the corporation; issued stock
b. paid three months rent for the store at $1800 per month(recorded as prepaid expense)
c. purchase supplies for $900 cash
d. purchase and received candy for $5000 on account due in 60days
e. negotiated and signed a two year $20000 loan at thebank
f. used the money from e to purcase a computer fr $3500 forrecordkeeping and inventory tracking and the balance fr furnitureand fixtures for the store
g. place a grand opening advertisement in the local paper for$625 cash
h. made sales n valentines day totaling $5800; $4925 was incash and the rest on accounts receivable. The cost of the candy sldwas 3000
i. made a $500 payment on accounts payable
j. incurred and paid employee wages of $1420
k. collected accounts recivable f $250 from customers
l. made a repair to one of the display cases for $315
m. made cash sales of $3000 during rest of the month. the costof the candy sold was $1700
Required:
1. Set up T accounts for cash, accounts receivable, supplies,merchandise inventory, prepaid expense, , equipment, furniture andfixture, accounts payable, notes payable, contributed capital, sales revenue, cost of good sold (expense), advertising expense,wage expense, repair expense. (all accounts begin with zerobalance)
2. record in the Taccounts the effects of each transaction for syrena sweets in february, referencing each transaction in theaccounts with the transaction letter. Showing the ending balances in the T accounts. Note that transaction h and mrequire two types of entries, one for revenue recognition and one for expense.