ACG 3113 Practice Set 2
The Gremlin Ice Cream Company started business July 1, 2000. Gremlin uses the perpetual inventory system.
Required: Using Excel, prepare general journal entries in good formfor only the transactions listed below (Explanations are not necessary):
July 1 2000 Issued 5,000 shares of $1 par value common stock for $95,000 cash.
July 1 Rented building space, paying three month’s rent of $24,000 in advance. (Use a real or permanent account for the building rent).
July 6 Rented equipment at a cost of $600 per month, paying $6,000 upon signing the rental agreement. (Use a nominal or temporary account for the equipment rental)
July 7 Purchased ice cream on account for $2,000.
July 8 Purchased supplies on account for $560. (Use a real or permanent account for the supplies)
July 12 Recorded cash sales in the amount of $2,500. The ice cream sold cost $800.
July 14 Paid wages of $1,800.
July 15 Paid two-year insurance premium of $2,900. (Use a real or permanent account for the insurance). The insurance is effective today.
July 16 Recorded sales on account of $2,600. The ice cream sold cost $675.
July 17 Paid for the ice cream purchased on the 7 thand the supplies purchased on the 8th.
July 18 Purchased store equipment for $45,000. Paid $12,000 in cash and signed a 2-year 10% Note for the remainder.
July 21 Received an invoice for the month’s utilities of $650. The bill is due on August 12 thand will be paid then.
July 27 Received a cash payment of $2,600 for goods sold on account on July 16.
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