Prepare Journal Entries to Record the Following Transactions of Daisy

question 137

Essay

Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required, state "No Entry."
1. Started business by issuing 10,000 shares of common stock for $20,000.
2. Signed a franchise agreement to pay royalties of 5% of sales.
3. Leased a building for three years at $500 per month and paid six months' rent in advance.
4. Purchased equipment for $5,400, paying $1,000 down and signing a two-year, 10% note for the balance.
5. Purchased $1,800 of supplies on account.
6. Recorded cash sales of $800 for the first week.
7. Paid weekly salaries and wages, $320.
8. Paid for supplies purchased in item (5).
9. Paid royalties due on first week's sales.
10. Recorded depreciation on equipment, $50.

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Definitions:

Proper Ergonomics

The study and application of designing equipment and devices that fit the human body and its cognitive abilities to optimize human well-being and overall system performance.

Wall-Mounted

Objects or devices that are fixed onto or hung from a wall, used to save space or as part of interior design.

Standard Chair

A type of chair designed to meet basic seating requirements, often used as a benchmark for comparison in ergonomics and furniture design.

Document Management

The process of handling, storing, and tracking documents within an organization, utilizing software for efficiency and accessibility.