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1. Neptun LLC is a company that is doing on resale of consumer food especially cheese and butter in its mall network. So it is decided to open a small representation store in our state. So below are the data you need for further operations.

Day 1. Established a company with authorized capital $500000 .

Day.2 Rented an office with monthly fee $3000 .

Day 3. Hired employees: Salaries $12000 .

Day 5. Obtained a warehouse for keeping goods $10000 .

Day 8. Purchased 1000 kg of white cheese by the price $60 per kg.

Day 12. Purchased additionally 800 kg of white cheese by the price $100 per kg and 1200 cream butter by the price $140 per kg.

Day 16. By the decision of procurement and sales departments additionally purchased 1200 kg of white cheese by the price $90 per unit and 800 cream butter by the price $110 per kg.

Day 20. The company realized 2100 kg of white cheese and 1500 kg of cream butter with 55% trade surcharge.

Day 24. The company received bill for utilities $1100 .

Day 30. The company paid for all expenses.

Required:

a) Prepare journal entries (7 points)

b) Prepare Income statement from the results of transactions (5 points)

c) Prepare Balance sheet (5 points)

2.Interpret the results of the statements? (2 points)

Please explain all steps detally.How and with the help of which rule did you solve this exercise.Also answer to all questions.

Answer & Explanation Solved by verified expert

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