In August, 2018, Canine Cuisine, Inc. was established in Lafayette, Louisiana, t

Question

In August, 2018, Canine Cuisine, Inc. was established in Lafayette, Louisiana, to sell gourmet dog ine via the internet to individual and commercial customers across the United States. Luke Ward Pachi Lee are the major stockholders in this corporation. t I The company completed the following transactions during August 2018. August 1 Stockholders (Luke and Pachi) invested $60,000 cash in the business. 3 Purchased a computer system for use in the business for $12,000: paid $5,000 8 Purchased $21,000 of gourmet dog cuisine from a local manufacturing company 10 down and signed a 1 year 12% note for the balance. 5 Hired Ima Nurd to design, set up, and operate the company's website. ?, paid 1/3 in cash and the balance on account Paid $6,000 for a one-year insurance policy effective August 1, 2018. r services to be provided from August 1 through October 31, 2018 Purchased supplies for $6,200 on account Paid $2,800 to advertise the opening of their business. 12 15 X18 Sold gourmet dog cuisine to customers on account for $26,000; the cuisine cost 23 25 $11,000 Paid $4,700 to creditors on account. Collected $12,600 from customers billed on August 18. 27 Sold gourmet dog cuisine to customers for $4,400 cash: the cuisine cost 29 30 $1,300 Paid $800 for utilities used during August. Declared and paid a $900 dividend. UIRED: Journalize the August transactions in the general journal.

Explanation / Answer

Cash

Capital Stock

60000

60000

Computer

cash

Notes payable

12000

5000

7000

Gourment Dog

Cash

Accounts

21000

7000

14000

Insurance

Cash

6000

6000

cash

Servive revenue

9000

9000

Supplies on hand

Accounts Payable

6200

6200

Advertisment

Cash

2800

2800

Accounts receivable

Sales

Cost of goods sold

Inventory

26000

11000

26000

11000

Accounts Payable

Cash

4700

4700

Cash

Accounts receivable

12600

12600

Cash

Sales

Cost of goods sold

Inventory

4400

1300

4400

1300

Utilities

Cash

800

800

Dividend

Cash

900

900

Account Titles Debit Credit 1

Cash

Capital Stock

60000

60000

3

Computer

cash

Notes payable

12000

5000

7000

8

Gourment Dog

Cash

Accounts

21000

7000

14000

10

Insurance

Cash

6000

6000

11

cash

Servive revenue

9000

9000

12

Supplies on hand

Accounts Payable

6200

6200

15

Advertisment

Cash

2800

2800

18

Accounts receivable

Sales

Cost of goods sold

Inventory

26000

11000

26000

11000

23

Accounts Payable

Cash

4700

4700

25

Cash

Accounts receivable

12600

12600

27

Cash

Sales

Cost of goods sold

Inventory

4400

1300

4400

1300

29

Utilities

Cash

800

800

30

Dividend

Cash

900

900

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