Super Pharma Company had the following transactions: 1. Issued capital stock for $935,000. 2. Purchased of inventory for $35,000 paying $15,000 and signing a note for the difference. 3. Paid $32,000 for electrical power bill. 4. Sold inventory costing $11,000 for a total sales price of $35,000. 5. Performed a service receiving $12,500 immediately and $2,500 to be collected. 6. Purchased a new Packaging Machine for $2,525 on account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Super Pharma Company had the following transactions:

1. Issued capital stock for $935,000.
2. Purchased of inventory for $35,000 paying $15,000 and signing a note for the difference.
3. Paid $32,000 for electrical power bill.
4. Sold inventory costing $11,000 for a total sales price of $35,000.
5. Performed a service receiving $12,500 immediately and $2,500 to be collected.
6. Purchased a new Packaging Machine for $2,525 on account.

 

Chart of Accounts for Super Pharma Company
Assets:
Cash
Accounts Receivable
Inventory
Equipment
Land
Liabilities:
Accounts Payable
Note Payable
Owners’ Equity:
Capital Stock
Dividends
Revenues:
Sales Revenue
Service Revenue
Expenses:
Cost of Goods Sold
Wages Expense
Utilities Expense
Rent Expense

Required:

A. Record the above transactions in Journal Entries

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