Individual Assignment #1: The Accounting Cycle Bob’s Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies, started business on October 1, 2011. The following transactions occurred during the month. 1. The company issued 6,000 shares of common stock at $15 per share. 2. The company acquired office equipment on October 1 for $30,000 cash. The equipment was used for administrative tasks. 3. The company purchased $15,000 of ingredients on account. 4. Rent is $500 a month. On October 1, the company paid rent for October, November, and December. 5. The company sold pizza and cookies for $35,000. The transaction was a credit sale. The pizza and cookies cost $9,000 to make. Depreciation | | | | | -417 | | | | | | -417 | | - | +417Depreciation | | -417 | c. Record wages payable | | | | | | | +400Wagespayable | | | | -400 | | - | +400Wage expense | | -400 | d. Record interest payable | | | | | | | +450Interestpayable | | | | -450 | | - | +450Interest expense | | -450 | e. Record COGS | | 3,500Inventory | | | | | | | | | -3,500 | | - | +3,500COGS | | -3,500 | e. Adjust based on unearned revenue | | | | | | | -10,000Unearned revenue | | | | 10,000 | +10,000 | - | | | +10,000 | Ending balance | 96,600 | | 50,600 | | -417 | | 24,850 | | 90,000 | | 23,833 | 45,000 | | 20,667 | | 24,333 | | | | | | | | | | | | | | - | | | |
For each journal entry, indicate clearly next to each account whether it is an asset(A), contr-asset(XA), Liability(L), shareholders' equity (SE), Revenues(R), or Expense(E). Follow the format of the following example:
