Show how the events above would be entered into the accounting system using the format demonstrated… 1 answer below »

Recording Transactions – Larrisa Enterprises, Inc., owns and operates a chain of mini-mart stores in a popular summer resort area.

Business is highly seasonal with about 80% of annual sales occurring during June,

July, and August. Shown below are transactions that occurred during the first week of June.

June 3 Merchandise costing $120,000 was purchased from a supplier using cash.

4Dividends of $25,000 were distributed to owners for their own personal use. (Hint: Dividends reduce Retained Earnings.)

5 Goods costing $112,000 were sold to customers for $140,000 cash.

5 Advertising was run in local newspapers during the first week. The bill, for $9,000, was paid on June 5.

6 Electricity, water, natural gas, and Internet charges totaling $450 were paid in cash.6 Display equipment was purchased for $15,000 cash. 7 Employees were paid a total of $12,900 for all work performed through the end of the first week of June.

Required Show how the events above would be entered into the accounting system using the format demonstrated in the chapter. Beginning balances are provided below:

ASSETS

=

LIABILITIES

+

OWNERS’ EQUITY

Date

Accounts

Cash

Other Assets

Contributed
Capital

Retained
Earnings

Beginning Amounts

90,000

150,000

80,000

60,000

100,000

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