halogen laminated products company began business on january 1, 2027. during january, the following…

halogen laminated products company began business on january 1, 2027. during january, the following transactions occurred: january 1 issued common stock in exchange for $107,000 cash. january 2 purchased inventory on account for $42,000 (the perpetual inventory system is used). january 4 paid an insurance company $3,240 for a one - year insurance policy. prepaid insurance was debited for the entire amount. january 10 sold inventory on account for $12,700. the cost of the inventory was $7,700. january 15 borrowed $37,000 from a local bank and signed a note. principal and interest at 10% will be repaid in six months. january 20 paid employees $6,700 for salaries for the first half of the month. january 22 sold inventory for $10,700 cash. the cost of the inventory was $6,700. january 24 paid $15,700 to suppliers for the inventory purchased on january 2. january 26 collected $6,350 on account from customers. january 28 paid $1,100 to the local utility company for january gas and electricity. january 30 paid $4,700 rent for the building. $2,350 was for january rent, and $2,350 for february rent. prepaid rent and rent expense were debited for their appropriate amounts. required: 1. prepare general journal entries to record each transaction 2. post the transactions to the appropriate t - accounts. 3. prepare an unadjusted trial balance as of january 30, 2027 complete this question by entering your answers in the tabs below. required 1 required 2 required 3 prepare general journal entries to record each transaction. note: if no entry is required for a transaction or event, select \no journal entry required\ in the first account field. view transaction list journal entry worksheet 1 2 3 4 5 6 7 8...... 13 issued common stock in exchange for $107,000 cash. note: enter debits before credits. date general journal debit credit january 01 2027

halogen laminated products company began business on january 1, 2027. during january, the following transactions occurred: january 1 issued common stock in exchange for $107,000 cash. january 2 purchased inventory on account for $42,000 (the perpetual inventory system is used). january 4 paid an insurance company $3,240 for a one - year insurance policy. prepaid insurance was debited for the entire amount. january 10 sold inventory on account for $12,700. the cost of the inventory was $7,700. january 15 borrowed $37,000 from a local bank and signed a note. principal and interest at 10% will be repaid in six months. january 20 paid employees $6,700 for salaries for the first half of the month. january 22 sold inventory for $10,700 cash. the cost of the inventory was $6,700. january 24 paid $15,700 to suppliers for the inventory purchased on january 2. january 26 collected $6,350 on account from customers. january 28 paid $1,100 to the local utility company for january gas and electricity. january 30 paid $4,700 rent for the building. $2,350 was for january rent, and $2,350 for february rent. prepaid rent and rent expense were debited for their appropriate amounts. required: 1. prepare general journal entries to record each transaction 2. post the transactions to the appropriate t - accounts. 3. prepare an unadjusted trial balance as of january 30, 2027 complete this question by entering your answers in the tabs below. required 1 required 2 required 3 prepare general journal entries to record each transaction. note: if no entry is required for a transaction or event, select \no journal entry required\ in the first account field. view transaction list journal entry worksheet 1 2 3 4 5 6 7 8...... 13 issued common stock in exchange for $107,000 cash. note: enter debits before credits. date general journal debit credit january 01 2027

Answer

Explanation:

Step1: Record January 1 transaction

Debit Cash for $107,000 (increase in asset) and credit Common Stock for $107,000 (increase in equity).

Date General Journal Debit Credit
January 1, 2027 Cash $107,000
Common Stock $107,000

Step2: Record January 2 transaction

Debit Inventory for $42,000 (increase in asset) and credit Accounts Payable for $42,000 (increase in liability).

Date General Journal Debit Credit
January 2, 2027 Inventory $42,000
Accounts Payable $42,000

Step3: Record January 4 transaction

Debit Prepaid Insurance for $3,240 (increase in asset) and credit Cash for $3,240 (decrease in asset).

Date General Journal Debit Credit
January 4, 2027 Prepaid Insurance $3,240
Cash $3,240

Step4: Record January 10 transaction

Debit Accounts Receivable for $12,700 (increase in asset), Cost of Goods Sold for $7,700 (increase in expense) and credit Inventory for $7,700 (decrease in asset), Sales Revenue for $12,700 (increase in revenue).

Date General Journal Debit Credit
January 10, 2027 Accounts Receivable $12,700
Cost of Goods Sold $7,700
Inventory $7,700
Sales Revenue $12,700

Step5: Record January 15 transaction

Debit Cash for $37,000 (increase in asset) and credit Notes Payable for $37,000 (increase in liability).

Date General Journal Debit Credit
January 15, 2027 Cash $37,000
Notes Payable $37,000

Step6: Record January 20 transaction

Debit Salaries Expense for $6,700 (increase in expense) and credit Cash for $6,700 (decrease in asset).

Date General Journal Debit Credit
January 20, 2027 Salaries Expense $6,700
Cash $6,700

Step7: Record January 22 transaction

Debit Cash for $10,700 (increase in asset), Cost of Goods Sold for $6,700 (increase in expense) and credit Inventory for $6,700 (decrease in asset), Sales Revenue for $10,700 (increase in revenue).

Date General Journal Debit Credit
January 22, 2027 Cash $10,700
Cost of Goods Sold $6,700
Inventory $6,700
Sales Revenue $10,700

Step8: Record January 24 transaction

Debit Accounts Payable for $15,700 (decrease in liability) and credit Cash for $15,700 (decrease in asset).

Date General Journal Debit Credit
January 24, 2027 Accounts Payable $15,700
Cash $15,700

Step9: Record January 26 transaction

Debit Cash for $6,350 (increase in asset) and credit Accounts Receivable for $6,350 (decrease in asset).

Date General Journal Debit Credit
January 26, 2027 Cash $6,350
Accounts Receivable $6,350

Step10: Record January 28 transaction

Debit Utilities Expense for $1,100 (increase in expense) and credit Cash for $1,100 (decrease in asset).

Date General Journal Debit Credit
January 28, 2027 Utilities Expense $1,100
Cash $1,100

Step11: Record January 30 transaction

Debit Rent Expense for $2,350 (increase in expense), Prepaid Rent for $2,350 (increase in asset) and credit Cash for $4,700 (decrease in asset).

Date General Journal Debit Credit
January 30, 2027 Rent Expense $2,350
Prepaid Rent $2,350
Cash $4,700

Post - to T - accounts (summary):

Cash: Debits: $107,000 (Jan 1), $37,000 (Jan 15), $10,700 (Jan 22), $6,350 (Jan 26) Credits: $3,240 (Jan 4), $6,700 (Jan 20), $15,700 (Jan 24), $1,100 (Jan 28), $4,700 (Jan 30)

Common Stock: Credit $107,000 (Jan 1)

Inventory: Debits: $42,000 (Jan 2); Credits: $7,700 (Jan 10), $6,700 (Jan 22)

Accounts Payable: Debits: $15,700 (Jan 24); Credits: $42,000 (Jan 2)

Prepaid Insurance: Debit $3,240 (Jan 4)

Accounts Receivable: Debits: $12,700 (Jan 10); Credits: $6,350 (Jan 26)

Sales Revenue: Credits: $12,700 (Jan 10), $10,700 (Jan 22)

Cost of Goods Sold: Debits: $7,700 (Jan 10), $6,700 (Jan 22)

Notes Payable: Credit $37,000 (Jan 15)

Salaries Expense: Debit $6,700 (Jan 20)

Utilities Expense: Debit $1,100 (Jan 28)

Rent Expense: Debit $2,350 (Jan 30)

Prepaid Rent: Debit $2,350 (Jan 30)

Unadjusted Trial Balance as of January 30, 2027:

Account Title Debit Credit
Cash $107,000 + 37,000+10,700 + 6,350-3,240 - 6,700-15,700 - 1,100-4,700=$129,660
Common Stock $107,000
Inventory $42,000-7,700 - 6,700 = $27,600
Accounts Payable $42,000 - 15,700=$26,300
Prepaid Insurance $3,240
Accounts Receivable $12,700-6,350 = $6,350
Sales Revenue $12,700+10,700 = $23,400
Cost of Goods Sold $7,700+6,700 = $14,400
Notes Payable $37,000
Salaries Expense $6,700
Utilities Expense $1,100
Rent Expense $2,350
Prepaid Rent $2,350
Total $221,310 $221,310

Answer:

  1. See above journal - entry explanations and tables for general journal entries.
  2. See above summary of T - account postings.
  3. See above unadjusted trial balance table.