Question

Halogen Laminated Products Company began business on January 1, 2018. During January, the following transactions occurred:

Jan.		1		Issued common stock in exchange for $119,000 cash.
		2		Purchased inventory on account for $26,000 (the perpetual inventory system is used).
		4		Paid an insurance company $1,320 for a one-year insurance policy.
		10		Sold merchandise on account for $11,100. The cost of the merchandise was $6,100.
		15		Borrowed $21,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.
		20		Paid employees $5,100 salaries and wages for the first half of the month.
		22		Sold merchandise for $9,100 cash. The cost of the merchandise was $5,100.
		24		Paid $14,100 to suppliers for the merchandise purchased on January 2.
		26		Collected $5,550 on account from customers.
		28		Paid $1,100 to the local utility company for January gas and electricity.
		30		Paid $3,100 rent for the building. $1,550 was for January rent, and $1,550 for February rent.

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, 2018.

Answer 1

1. General journal entries to record each transaction is:

Date	Particulars	L.F	Amount ($)	Amount ($)
Jan-01	Cash		119,000
	Common Stock			119,000
	(For common stock issued)
Jan-02	Merchandise Inventory		26,000
	Account Payable			26,000
	(For inventory purchased)
Jan-04	Prepaid insurance		1,320
	Cash			1,320
	(For paid for 1 year insurance)
Jan-10	Account Receivable		11,100
	Sales Revenue			11,100
	(for merchandise sold)
Jan-10	Cost of goods sold		6,100
	Merchandise Inventory			6,100
	(For cost of goods sold recorded)
Jan-15	Cash		21,000
	Note Payable			21,000
	(for money borrowed from bank)
Jan-20	Salaries and Wages Expense		5,100
	Cash			5,100
	(For paid for salary expenses)
Jan-22	Cash		9,100
	Sales Revenue			9,100
	(for merchandise sold)
Jan-22	Cost of goods sold		5,100
	Merchandise Inventory			5,100
	(For cost of goods sold recorded)
Jan-24	Account Payable		14,100
	Cash			14,100
	(For cash paid to suppliers)
Jan-26	Cash		5,550
	Account Receivable			5,550
	(For cash received)
Jan-28	Gas and Electricity Expense		1,100
	Cash			1,100
	(For cash paid for gas and electricity)
Jan-30	Rent Expense		1,550
	Prepaid rent		1,550
	Cash			3,100
	(For cash paid for Jan and Feb Rent)

2. Transactions into the appropriate T-accounts are:

Cash
Particulars	Amount	Particulars	Amount
Jan-01	119,000	Jan-04	1,320
Jan-15	21,000	Jan-20	5,100
Jan-22	9,100	Jan-24	14,100
Jan-26	5,550	Jan-28	1,100
		Jan-30	3,100
	154,650		24,720
Closing Balance	129,930
Merchandise Inventory
Particulars	Amount	Particulars	Amount
Jan-02	26,000	Jan-10	6,100
		Jan-22	5,100
	26,000		11,200
Closing Balance	14,800
Prepaid insurance
Particulars	Amount	Particulars	Amount
Jan-04	1,320
	1,320		0
Closing Balance	1,320
Account Receivable
Particulars	Amount	Particulars	Amount
Jan-10	11,100	Jan-26	5,550
	11,100		5,550
Closing Balance	5,550
Prepaid rent
Particulars	Amount	Particulars	Amount
Jan-30	1,550
Closing Balance	1,550
Accounts Payable
Particulars	Amount	Particulars	Amount
Jan-24	14,100	Jan-02	26,000
	14,100		26,000
		Closing Balance	11,900
Common Stock
Particulars	Amount	Particulars	Amount
		Jan-01	119,000
		Closing Balance	119,000
Sales Revenue
Particulars	Amount	Particulars	Amount
		Jan-10	11,100
		Jan-22	9,100
			20,200
		Closing Balance	20,200
Cost of goods sold
Particulars	Amount	Particulars	Amount
Jan-10	6,100
Jan-22	5,100
Closing Balance	11,200
Note Payable
Particulars	Amount	Particulars	Amount
		Jan-15	21,000
		Closing Balance	21,000
Salaries and Wages Expense
Particulars	Amount	Particulars	Amount
Jan-20	5,100
Closing Balance	5,100
Gas and Electricity Expense
Particulars	Amount	Particulars	Amount
Jan-28	1,100
Closing Balance	1,100
Rent Expense
Particulars	Amount	Particulars	Amount
Jan-30	1,550
Closing Balance	1,550

3. Unadjusted Trial Balance

Halogen Laminated Products Company
Trial Balance
January 31, 2018
	Debit	Credit
Cash	129,930
Merchandise Inventory	14,800
Account Receivable	5,550
Prepaid insurance	1,320
Prepaid rent	1,550
Accounts Payable		11,900
Note Payable		21,000
Common Stock		119,000
Sales Revenue		20,200
Cost of goods sold	11,200
Salaries and Wages Expense	5,100
Gas and Electricity Expense	1,100
Rent Expense	1,550
Total	172,100	172,100