what is adjusting journal entries? T1 Feb 1 You invest $10,000 into your brand new company, Just for Kicks. T2 Feb 1 You obtain a bank loan of $20,000 at a rate of 8% per year. T3 Feb 2 You purchase 50 pairs of shoes from Sloan's Shoes. Total cost is $2,500 terms 2/10, net 30. T4 Feb 3 Go to Staples to buy a desk, chair, and filing cabinet etc for a total of $1,100. T5 Feb 3 When at Staples you also purchase $500 worth of packing and office supplies. T6 Feb 4 You pay $400 for the first month of Shopify's Advanced Features. T7 Feb 6 With the website set up, you make your first sales - 10 pairs of shoes at an average price of $120 each. T8 Feb 6 You go to the post office and ship the 10 pairs of shoes for a cost of $11 per pair. You pay with a business cheque. T9 Feb 8 A friend comes to your place and buys shoes directly from you. He says he'll pay you the $100 next week. T10 Feb 13 In the last week, you sold 38 pairs of shoes at an average price of $120 each. T11 Feb 14 You're low on inventory and buy another 80 pairs from Sloan's Shoes. You pay with a business cheque. T12 Feb 14 While you're there, you pay Sloan's shoes the full amount owing from Feb 2. T13 Feb 14 On the way back from Sloan's Shoes, you buy yourself a $15 lunch using cash from the business. T14 Feb 20 One of your customers emails to say they want to return the shoes - he was able to buy them elsewhere for less. You decide to allow the return but he must cover the cost of shipping them back to you. You receive the shoes the next day and process the full refund of $120. T15 Feb 25 You learn that Shopify's service allows you to sell gift certificates. You do some promotion and within a few hours have sold $500 worth of gift cards. T16 Feb 26 In the last few weeks you've sold 60 pairs of shoes for the average price of $120. Gift cards totalling $150 were used. T17 Feb 28 With so much cash on hand, you decide to make a $15,000 payment on the principal of your bank loan.

what is adjusting journal entries? T1 Feb 1 You invest $10,000 into your brand new company, Just for Kicks. T2 Feb 1 You obtain a bank loan of $20,000 at a rate of 8% per year. T3 Feb 2 You purchase 50 pairs of shoes from Sloan's Shoes. Total cost is $2,500 terms 2/10, net 30. T4 Feb 3 Go to Staples to buy a desk, chair, and filing cabinet etc for a total of $1,100. T5 Feb 3 When at Staples you also purchase $500 worth of packing and office supplies. T6 Feb 4 You pay $400 for the first month of Shopify's Advanced Features. T7 Feb 6 With the website set up, you make your first sales - 10 pairs of shoes at an average price of $120 each. T8 Feb 6 You go to the post office and ship the 10 pairs of shoes for a cost of $11 per pair. You pay with a business cheque. T9 Feb 8 A friend comes to your place and buys shoes directly from you. He says he'll pay you the $100 next week. T10 Feb 13 In the last week, you sold 38 pairs of shoes at an average price of $120 each. T11 Feb 14 You're low on inventory and buy another 80 pairs from Sloan's Shoes. You pay with a business cheque. T12 Feb 14 While you're there, you pay Sloan's shoes the full amount owing from Feb 2. T13 Feb 14 On the way back from Sloan's Shoes, you buy yourself a $15 lunch using cash from the business. T14 Feb 20 One of your customers emails to say they want to return the shoes - he was able to buy them elsewhere for less. You decide to allow the return but he must cover the cost of shipping them back to you. You receive the shoes the next day and process the full refund of $120. T15 Feb 25 You learn that Shopify's service allows you to sell gift certificates. You do some promotion and within a few hours have sold $500 worth of gift cards. T16 Feb 26 In the last few weeks you've sold 60 pairs of shoes for the average price of $120. Gift cards totalling $150 were used. T17 Feb 28 With so much cash on hand, you decide to make a $15,000 payment on the principal of your bank loan.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

what is adjusting journal entries?

Feb 1

You invest $10,000 into your brand new company, Just for Kicks.

Feb 1

You obtain a bank loan of $20,000 at a rate of 8% per year.

Feb 2

You purchase 50 pairs of shoes from Sloan's Shoes. Total cost is $2,500 terms 2/10, net 30.

Feb 3

Go to Staples to buy a desk, chair, and filing cabinet etc for a total of $1,100.

Feb 3

When at Staples you also purchase $500 worth of packing and office supplies.

Feb 4

You pay $400 for the first month of Shopify's Advanced Features.

Feb 6

With the website set up, you make your first sales - 10 pairs of shoes at an average price of $120 each.

Feb 6

You go to the post office and ship the 10 pairs of shoes for a cost of $11 per pair. You pay with a business cheque.

Feb 8

A friend comes to your place and buys shoes directly from you. He says he'll pay you the $100 next week.

T10

Feb 13

In the last week, you sold 38 pairs of shoes at an average price of $120 each.

T11

Feb 14

You're low on inventory and buy another 80 pairs from Sloan's Shoes. You pay with a business cheque.

T12

Feb 14

While you're there, you pay Sloan's shoes the full amount owing from Feb 2.

T13

Feb 14

On the way back from Sloan's Shoes, you buy yourself a $15 lunch using cash from the business.

T14

Feb 20

One of your customers emails to say they want to return the shoes - he was able to buy them elsewhere for less.

You decide to allow the return but he must cover the cost of shipping them back to you. You receive

the shoes the next day and process the full refund of $120.

T15

Feb 25

You learn that Shopify's service allows you to sell gift certificates. You do some promotion

and within a few hours have sold $500 worth of gift cards.

T16

Feb 26

In the last few weeks you've sold 60 pairs of shoes for the average price of $120. Gift cards totalling $150 were used.

T17

Feb 28

With so much cash on hand, you decide to make a $15,000 payment on the principal of your bank loan.

[Rename
[Rename
Packing and
Office Supplies,
AD: Office
Furn & Equip
Shipping (Rename]
Costs
Accounts
Office Furn &
Accounts
Unearned
Shoe Sale
Sales
Cost of
Online Store
[Rename] [Rename]
Bank / Cash
Receivable
Inventory
Equipment
Payable
Revenue
Bank Loan
Equity
Drawings
Sales
Expense Expense Expense Expense Expense
Revenue
Returns
Expenses

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