You have “volunteered” as an unpaid intern to keep the books formy company that sells hotdogs at the beach. I established thebusiness on September 1 and officially started selling hotdogs 3days later.
Below are the transactions for September.
September1 The owner contributed $20,000 to the business to start theoperations.
September2 Purchased a fully equipped hotdog cart for $15,000. Paid $5,000upfront and put the remainder of the balance on account.
September 3 Purchased hotdogs, sodas and consumable supplies for $500.
September3 Purchased 3 months of advertising services from the HB Timesnewspaper for $300.
September4 Sold $200 worth of hot dogs to customers for cash.
September 5 Sold $300 worth of hot dogs to customers for cash.
September 6 Sold $100 worth of hotdogs the HBPD on account.
September8 The HB surfing contest company asked me to supply hotdogs for theircontests and paid $600 in advance for a total of 6 contests.
September 9 Hired a person to help with the surf contest sales. Paid thatperson $100 for services performed.
September10 Purchased hotdogs, sodas and consumable supplies for $500.
September12 Sold $200 worth of hot dogs to customers for cash.
September18 The city of HB requested that you provide $500 worth of food for anevent they are holding at the pier this coming weekend. The job wascompleted. The city of HB paid $200 and you billed thedifference.
September25 HBPD paid the balance on account due from September 6.
September26 Received propane (utility) bill, $100, which was put onaccount.
September30 Took out a small business loan from the bank for $15,000 to expandthe business. The bank approved the loan due one year fromtoday.
September30 The owner withdrew $200 in the form of dividends.
Adjustments
- Expired advertising.
- Provided hotdogs for 3 surfing contests
- Depreciation of hotdog cart, $300.
Instructions
- Journalize all September transactions in the general journal.You may skip journal entry descriptions.
- Post every journal entry recorded in #1 above to the generalledger. The first transaction on September 1 has been journalizedin the general journal and posted to the general ledger as anexample.
