The following accounts appear in the ledger of the Henrietta’s Huge Hair Hairdressers: Cash at Bank; Accounts Receivable; Hairdressing Equipment; Accounts Payable; Henrietta Bouffant, Drawings; Hairdressing Revenue; Salaries Expense; and Advertising Expense.
Required
A. Prepare the general journal entries to record the transactions that occurred during December (ignore GST).
B. Explain why you have made each of the journal entries to account for the transactions.
|
Dec. |
1 3 8 14 19 23 30 |
Purchased hair drying equipment for $65 000. Paid $5000 deposit and agreed to pay the balance in 60 days. Henrietta withdrew $1200 from the business to buy herself a new dress for a friend’s wedding. Paid salaries of $6800. Paid $800 for advertisements in the local newspaper. Received $540 from customers to reduce the balance in their accounts. Paid $3700 to creditors for supplies that had been purchased on credit. Earned $57600 in hairdressing revenue during the month. Of these, 80% of the fees were collected in cash and 20% will be paid within a month. |
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