Question

The following transactions occurred at the Daisy King Ice Cream Company.

Started business by issuing 10,000 shares of common stock for $34,000.

Signed a franchise agreement to pay royalties of 5% of sales.

Leased a building for three years at $640 per month and paid six months' rent in advance.

Purchased equipment for $6,800, paying $3,500 down and signing a two-year, 10% note for the balance.

Purchased $3,200 of supplies on account.

Recorded cash sales of $2,200 for the first week.

Paid weekly salaries and wages, $1,020.

Paid for supplies purchased in item (5).

Paid royalties due on first week's sales.

Recorded depreciation on equipment, $140.

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.)

1. Started business by issuing 10,000 shares of common stock for $34,000.

2. Signed a franchise agreement to pay royalties of 5% of sales.

3. Leased a building for three years at $640 per month and paid six months' rent in advance.

4. Purchased equipment for $6,800, paying $3,500 down and signing a two-year, 10% note for the balance.

5. Purchased $3,200 of supplies on account.

6. Recorded cash sales of $2,200 for the first week.

7. Paid weekly salaries and wages, $1,020.

8. Paid for supplies purchased in item (5).

9. Paid royalties due on first week's sales.

10. Recorded depreciation on equipment, $140.

Event	General Jouranl	Debit	Credit
1
2
3
4
5
6
7
8
9
10

Answer 1