Prepare Journal Entries to Record the Following Transactions of Daisy

question 70

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 capital 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 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:

Genetically Based

Attributes or conditions that are determined or significantly influenced by one's genetic makeup.

Repress Hostility

The act of suppressing feelings of anger and disdain towards others, often unconsciously.

Parents' Fear

The anxiety or concern experienced by parents regarding the welfare and safety of their children.

Guilt

An emotional experience that occurs when a person believes they have violated a moral standard, causing internal conflict and feelings of remorse.