Feb. Billy Bob began selling T-shirts to the kids and parents. Billy pays cash for 50 T- shirts at an introductory cost of $5/each. The T-shirts are being held for resale. Billy uses the perpetual method and uses the FIFO method to account for inventory. 3 Purchased supplies on account for $300. Paid the employee cash of $1,155. *Do not forget that a portion of the amount of $1,155 was already recorded as an expense at the end of January. Paid a cleaning service to have the daycare professionally cleaned, $125. Paid cash for the utility bill received at the end of January. 1 5 9 11 Provided the service for the davcare services owed from January 21st Hint:
Feb. Billy Bob began selling T-shirts to the kids and parents. Billy pays cash for 50 T- shirts at an introductory cost of $5/each. The T-shirts are being held for resale. Billy uses the perpetual method and uses the FIFO method to account for inventory. 3 Purchased supplies on account for $300. Paid the employee cash of $1,155. *Do not forget that a portion of the amount of $1,155 was already recorded as an expense at the end of January. Paid a cleaning service to have the daycare professionally cleaned, $125. Paid cash for the utility bill received at the end of January. 1 5 9 11 Provided the service for the davcare services owed from January 21st Hint:
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 33P
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Could you please help me with the journal and ledger of these transactions, I want to make sure I am on the right path. Thank you so much!
Transcribed Image Text:Feb.
Billy Bob began selling T-shirts to the kids and parents. Billy pays cash for 50 T-
shirts at an introductory cost of $5/each. The T-shirts are being held for resale.
Billy uses the perpetual method and uses the FIFO method to account for
inventory.
Purchased supplies on account for $300.
Paid the employee cash of $1,155. *Do not forget that a portion of the amount of
$1,155 was already recorded as an expense at the end of January.
8
1
5
Paid a cleaning service to have the daycare professionally cleaned, $125.
Paid cash for the utility bill received at the end of January.
11 Provided the service for the daycare services owed from January 21st. Hint:
Unearned daycare fees was recorded in January for services owed. Reduce the
liability and increase revenues as service has been provided.
11 Collected cash of $535 from customers on account.
9
11 Collected cash of $3,900 from parents for daycare provided from February 1st
through February 11th.
12 Sold 40 T-Shirts at a price of $10/each receiving cash.
13
Paid cash for a newspaper advertisement, $150.
14 Billy Bob had 30 more T-shirts made in exchange for cash. The cost of the T-
shirts increased to $6/each. The T-shirts are to be held for resale.
15 Billy gives one of the T-shirts to his helper and keeps one T-shirt for himself. The
T-shirts are considered cost of merchandise sold.
15 Purchased groceries on account for $550 (recorded as food expense).
16 Sold 20 T-shirts at a price of $10/each receiving cash.
16 Billy Bob had 30 more T-shirts made in exchange for cash. The cost of the T-
shirts increased to $7/each. The T-shirts are to be held for resale.
19 Paid the employees cash of $2,100 for last two weeks.
20 Paid a cleaning service to have the daycare professionally cleaned, $125.
25 Collected cash of $4,750 from parents for daycare provided from February 12th
through February 25th.
25 Billy Bob paid cash of $3,000 of amount owed on account.
25 Sold 28 Billy Bob T-shirts at a price of $10/T-shirt receiving cash.
28 Daycare paid Billy a salary of $2,500.
28 Daycare paid Billy a dividend of $250.
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