Question

AP2-9 (Transaction analyois and the basic accounting equation) Primrose Beauty Supplies Lra. was incorporated in January 2016. Primrose had the following transactio ons in first month: Date: Jan. 1 Received $150,000 in exchange for issuing 15,000 common shares. AP Borrowed $100,000 from the local bank at 9%. The terms of the borrow loan is to be repaid at the end of each month in the amount of $5,000 per month plus interest. Leased a commercial warehouse, paying $8,000, of which $5,000 represented a damage deposit ing agreement state that the I 2 an $3,000 was the rent for January. 8 Purchased nail art kits, one of Primrose's best-selling product lines, costing $26,200 on acount. A chain of beauty salons paid Primrose a deposit of $6,500 related to a special order of hair products that were to be custom packaged under the salon's logo. Primrose agreed to deliver these products on February 15 12 Recorded its sales of the first two weeks of the month. Total sales (half in cash and half on account) amounted to $18,200 and the inventory related to these sales was determined to have a cost of $9,20 Paid the suppliers $7,000 for goods previously purchased on account. Collections from customers on account totalled $7,100. 16 19 25 31 Made the loan payment required under the terms of the borrowing agreement Required: Analyze and rcord these transactions using the template method ASSETS LIABILITIES S/H EQUITY Prepaid Unearned Loan Common Date/Ref. Cash A/R Inv. Rent A/P Revenue Payable Shares RE R/E/DD

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Date	Cash	A/R	Inv	Prepa Rent	A/P	Unearned Revenue	Loan Payable	Common Share	RE	R/E/DD	Working
Jan 1	$150,000							$          150,000
Jan 1	$100,000						$      100,000
Jan 2	$   -8,000			$       5,000					$   -3,000	E
Jan 8			$ 26,200		$ 26,200
Jan 12	$    6,500					$                     6,500
Jan 16	$    9,100	$    9,100							$ 18,200	R
Jan 16			$   -9,200						$   -9,200	E
Jan 19	$   -7,000				$   -7,000
Jan 25	$    7,100	$   -7,100
Jan 31	$   -5,000						$         -5,000				Principal
Jan 31	$      -750								$      -750	E	100000*9%/12
Total	$251,950	$    2,000	$ 17,000	$       5,000	$ 19,200	$                     6,500	$        95,000	$          150,000	$    5,250