Question

 Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:

 Jan. 1 Issued common stock in exchange for $115,000 cash.

 2 Purchased inventory on account for $30,000 (the perpetual inventory system is used).

 Paid an insurance company $1,800 for a one-year insurance policy. Prepaid insurance was debited for the entire amount.

 10 Sold merchandise on account for $11,500. The cost of the merchandise was $6,500.

 15 Borrowed $25,000 from a local bank and signed a note. Principal and interest at 108 is to be repaid in six months.

 20 Paid employees $5,500 salaries for the first half of the month.

 22 Sold merchandise for $9,500 cash. The cost of the merchandise was $5,500.

 24 Paid $14,500 to suppliers for the merchandise purchased on January 2.

 26 Collected $5,750 on account from customers.

 28 Paid $1,000 to the local utility company for January gas and electricity.

 30 Paid $3, 500 rent for the building. $1,750 was for January rent, and $1,750 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts.

 Required:

 1. Prepare general journal entries to record each transaction.

 2. Post the transactions into the appropriate T-accounts.

 3. Prepare an unadjusted trial balance as of January 30, 2021.

Answer 1

Requirement 1:

Date	Account title and Explanation	Debit	Credit
Jan.1	Cash	$115,000
	Common stock		$115,000
	[To record issuance of common stock]
Jan.2	Inventory	$30,000
	Accounts payable		$30,000
	[To record purchase of inventory on account]
Jan.4	Prepaid insurance	$1,800
	Cash		$1,800
	[To record cash paid in advance for insurance]
Jan.10	Accounts receivable	$11,500
	Sales revenue		$11,500
	[To record sales on account]
	Cost of goods sold	$6,500
	Inventory		$6,500
	[To record cost of goods sold]
Jan.15	Cash	$25,000
	Notes payable		$25,000
	[To record borrowed from bank]
Jan.20	Salaries and wages expense	$5,500
	Cash		$5,500
	[To record payment of salaries and wages]
Jan.22	Cash	$9,500
	Sales revenue		$9,500
	[To record sales on account]
	Cost of goods sold	$5,500
	Inventory		$5,500
	[To record cost of goods sold]
Jan.24	Accounts payable	$14,500
	Cash		$14,500
	[To record cash paid for accounts payable]
Jan.26	Cash	$5,750
	Accounts receivable		$5,750
	[To record cash collected from customers]
Jan.28	Utilities expense	$1,000
	Cash		$1,000
	[To record payment of utilities]
Jan.30	Rent expense	$1,750
	Prepaid rent	$1,750
	Cash		$3,500
	[To record payment of rent]

Requirement 2:

Cash					Accounts receivable
Beg. Bal.	$0				Beg. Bal.	$0
Jan.1	$115,000	$1,800	Jan.4		Jan.10	$11,500	$5,750	Jan.26
Jan.15	$25,000	$5,500	Jan.20
Jan.22	$9,500	$14,500	Jan.24
Jan.26	$5,750	$1,000	Jan.28
		$3,500	Jan.30
End. Bal.	$128,950				End. Bal.	$5,750
Inventory					Prepaid insurance
Beg. Bal.	$0				Beg. Bal.	$0
Jan.2	$30,000	$6,500	Jan.10		Jan.4	$1,800
		$5,500	Jan.22
End. Bal.	$18,000				End. Bal.	$1,800
Prepaid rent					Accounts payable
Beg. Bal.	$0				Beg. Bal.		$0
Jan.30	$1,750				Jan.24	$14,500	$30,000	Jan.2
End. Bal.	$1,750				End. Bal.		$15,500
Notes payable					Common stock
Beg. Bal.		$0			Beg. Bal.		$0
		$25,000	Jan.15				$115,000	Jan.1
End. Bal.		$25,000			End. Bal.		$115,000
Service revenue					Cost of goods sold
Beg. Bal.		$0			Beg. Bal.	$0
		$11,500	Jan.10		Jan.10	$6,500
		$9,500	Jan.22		Jan.22	$5,500
End. Bal.		$21,000			End. Bal.	$12,000
Salaries expense					Rent Expense
Beg. Bal.	$0				Beg. Bal.	$0
Jan.20	$5,500				Jan.30	$1,750
End. Bal.	$5,500				End. Bal.	$1,750
Utilities expense
Beg. Bal.	$0
Jan.28	$1,000
End. Bal.	$1,000

Requirement 3:

HALOGEN LAMINATED PRODUCTS COMPANY
Unadjusted Trail Balance
January 30,2021
Account title	Debit	Credit
Cash	$128,950
Accounts receivable	$5,750
Inventory	$18,000
Prepaid insurance	$1,800
Prepaid rent	$1,750
Accounts payable		$15,500
Notes payable		$25,000
Common stock		$115,000
Service revenue		$21,000
Cost of goods sold	$12,000
Salaries expense	$5,500
Rent expense	$1,750
Utilities expense	$1,000
Total	$176,500	$176,500