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Sew CoolJE, T accounts, TB solution

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Question;1. Near the end of;her freshman year at college, Heather Miller is faced with the decision of;whether to get a summer job, go to summer school, or start a summer dress;making business. Heather has had some experience designing and sewing and;believes it might be the most lucrative of her summer alternatives. She starts;?Sew Cool.?;During June, the;first month of business, the following occur;A. Heather deposits $1,000 of her own money into Sew;Cool?s checking account.;B. Sew Cool purchases equipment for $1,000. The;company signs a note payable for this purchase.;C. Sew Cool purchases $1,000 in sewing supplies and;material in cash.;D. Sew Cool gives Heather?s parents a check for $80;for rent and utilities.;E. Heather sews and sells twenty dresses during the;month. Each dress has a price of $60. Cash is received for twelve of the;dresses, with customers owing for the remaining eight.;F. The dresses sold above cost $35 each to make.;G.Sew Cool purchases advertising for $50 cash.;H. Sew Cool pays Heather a cash dividend of $10 cash.;I. Sew Cool?s taxes, paid in cash, amount to $87.;(A)Prepare journal;entries for the above transactions.;(B)Prepare;T-accounts for each account used.;(C) Prepare a trial balance for;June.

 

Paper#37588 | Written in 18-Jul-2015

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