Please, I need correct answers and clear explanation. Thanks. Prepare all necess

Question

Please, I need correct answers and clear explanation. Thanks.

Prepare all necessary journal entries related to the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

list of accounts are:

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Accumulated Depreciation-Vehicles
Advertising Expense
Buildings
Cash
Common Shares
Cost of Goods Sold
Depreciation Expense
Dividends Payable
Equipment
Income Tax Payable
Interest Expense
Interest Payable
Inventory
Land
Miscellaneous Expense
Notes Payable
Operating Expense
Other Expenses
Prepaid Insurance
Prepaid Rent
Rent Expense
Rent Revenue
Retained Earnings
Selling and Administrative Expenses
Supplies Expense
Wages Payable
Wages Expense
Advances to Employees
Bank Loan Payable
Deposits
Dividend Revenue
Dividends Declared
Income Tax Expense
Income Summary
Insurance Expense
Interest Revenue
Interest Receivable
License Expense
Long-Term Investments
Mortgage Payable
No Entry
Notes Receivable
Supplies
Prepaid Expenses
Prepaid License
Prepaid Property Tax
Property Tax Expense
Repair and Maintenance Expense
Salaries Payable
Salaries Expense
Sales Revenue
Service Revenue
Short-Term Investments
Telephone Expense
Unearned Rent Revenue
Unearned Revenue
Utilities Expense
Vehicles

Le Petit Croissant Ltd. ("LPC") is a wholesale bakery that supplies flash frozen croissants to restaurants, hotels, and other commercial customers. LPC began operating in August 2016 and had the following transactions in its first month LPC issued 28,000 common shares to its two founding shareholders in exchange for $220,000 in cash and equipment valued at $60,000. The company borrowed $120,000 from the Commercial Bank at an interest rate of 6%. The borrowing agreement terms state that the loan is to be repaid at the end of each month in the amount of $3,000 per month plus interest. In order to access a commercial kitchen, LPC leased the site of a former restaurant, paying $6,400, of which $3,200 represented the rent for August and the balance was a damage deposit. LPC purchased flour and other ingredients costing $34,000 on account. LPC paid $6,200 to a local marketing company for its logo design and media planning services. LPC recorded its sales of the first two weeks of the month. Total sales (half in cash and half on account) amounted to $51,800 and the inventory related to these sales was determined to have a cost of $17,700 Paid the suppliers $25,800 for goods previously purchased on account. Collections from customers on account totalled $21,400. LPC purchased additional inventory (flour and so on) on account for $22,500. LPC received an invoice from its natural gas supplier for $2,400, which is payable on September 14 Aug. 1 1 3 8 12 14 19 25 26 29 31 31 31 31 LPC recorded the sales for the balance of the month. Sales for this period totalled $64,800, of which $23,000 was on account. The cost of the ingredients from inventory related to these sales amounted to $20,700 LPC's 6 full-time employees were paid $3,400 each in wages for the month LPC made the loan payment required under the terms of the borrowing agreement LPC's board of directors declared a dividend of $1 per share to the holders of the company's common shares Search the web and Windows 2018

Explanation / Answer

Solution:

Date

Accounts

Debit

Credit

Aug.1

Cash

$220,000

Vehicles

$60,000

Common Shares

$280,000

Aug.1

Cash

$120,000

Notes Payable

$120,000

Aug.3

Rent Expense

$3,200

Deposits (6400 - 3200)

$3,200

Cash

$6,400

Aug.8

Inventory

$34,000

Accounts Payable

$34,000

Aug.12

Advertising Expense

$6,200

Cash

$6,200

Aug.14

Cash (51800 / 2)

$25,900

Accounts Receivable

$25,900

Sales Revenue

$51,800

Aug.14

Cost of Goods Sold

$17,700

Inventory

$17,700

Aug.19

Accounts Payable

$25,800

Cash

$25,800

Aug.25

Cash

$21,400

Accounts Receivable

$21,400

Aug.26

Inventory

$22,500

Accounts Payable

$22,500

Aug.29

Utilities Expense

$2,400

Accounts Payable

$2,400

Aug.31

Cash (64,800 - 41,800)

$41,800

Accounts Receivable

$23,000

Sales Revenue

$64,800

Aug.31

Cost of Goods Sold

$20,700

Inventory

$20,700

Aug.31

Salaries Expense (3400*6)

$20,400

Cash

$20,400

Aug.31

Notes Payable

$3,000

Interest Expense (120,000*6%*1/12)

$600

Cash

$3,600

Aug.31

Retained Earnings (28,000 Shares x $1)

$28,000

Dividend Payable

$28,000

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Date

Accounts

Debit

Credit

Aug.1

Cash

$220,000

Vehicles

$60,000

Common Shares

$280,000

Aug.1

Cash

$120,000

Notes Payable

$120,000

Aug.3

Rent Expense

$3,200

Deposits (6400 - 3200)

$3,200

Cash

$6,400

Aug.8

Inventory

$34,000

Accounts Payable

$34,000

Aug.12

Advertising Expense

$6,200

Cash

$6,200

Aug.14

Cash (51800 / 2)

$25,900

Accounts Receivable

$25,900

Sales Revenue

$51,800

Aug.14

Cost of Goods Sold

$17,700

Inventory

$17,700

Aug.19

Accounts Payable

$25,800

Cash

$25,800

Aug.25

Cash

$21,400

Accounts Receivable

$21,400

Aug.26

Inventory

$22,500

Accounts Payable

$22,500

Aug.29

Utilities Expense

$2,400

Accounts Payable

$2,400

Aug.31

Cash (64,800 - 41,800)

$41,800

Accounts Receivable

$23,000

Sales Revenue

$64,800

Aug.31

Cost of Goods Sold

$20,700

Inventory

$20,700

Aug.31

Salaries Expense (3400*6)

$20,400

Cash

$20,400

Aug.31

Notes Payable

$3,000

Interest Expense (120,000*6%*1/12)

$600

Cash

$3,600

Aug.31

Retained Earnings (28,000 Shares x $1)

$28,000

Dividend Payable

$28,000

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