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PROBLEM 1

On 2 August 2022, Boris Johnson began a new business, called Starbucks Inc., company delivering high quality coffee and beverages. The following transactions were completed by the business during May:

2 Aug Issued to Boris 10,000 shares of capital stock in exchange for his investment of 3,500,000 cash.

3 Aug Purchased a store of 1000 square meters for 3,780,000 paying 780,000 cash and signing a note payable for the balance. The interest rate for the Note payable is 3% on annual terms, and it will be paid at maturity which will be August 3^rd 2025.

4 Aug Purchased machinery for 1,500,000 in order to be prepared to deliver the product to its customers, and paid cash.

5 Aug Purchased Equipment for 500.000, he paid 40% cash and received an invoice stating that the remaining amount would be paid October 5^th 2022.

6 Aug Hired 5 employees with an average annual salary of 16.000, the employees will be paid at the end of every month.

7 Aug Signed an insurance contract for 24.000, and paid cash.

8 Aug Acquired raw materials for an amount of 300.000, the agreed payment terms were on account 30 days.

31 Aug Sold products until raw materials stock was finished for 1.000.000 to different customers, all sales were paid in cash.

1) Record the journal entries for the above transactions (use account titles: Accounts Receivable, Cash, Building, Capital Stock, Notes Payable, Equipment, Machines, Accounts Payable, Insurance Expense, Unexpired insurance, Sales, Stocks Cost of goods sold

2) ) Post the journal entries onto the appropriate ledger T accounts.

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