Chapter 4, Problem 4.7E

Preparing Journal Entries in the General Journal. Cookies Cakes & Crumbs Bakery (CC&C) ended its first year of operations on December 31, 2018. During 2018, the following transactions occurred:

January 10:	The owners of CC&C invested $200,000 (the par value of the stock) and acquired 20,000 shares of common stock.
March 15:	CC&C purchased equipment in the amount of $48,000 on credit account with the vendor.
April 12:	CC&C purchased supplies in the amount of $24,000 and paid cash.
May 31:	CC&C collected $82,000 in sales revenue for the month, all of which was paid in cash. Ignore Cost of Goods Sold.
June 15:	CC&C paid employees $22,000 in cash for wages.
July 31:	CC&C purchased supplies in the amount of $16,000 on credit account with the supplier.
September 30:	CC&C paid the balance due to the equipment vendor for the purchase made on March 15.
November 10:	CC&C paid the balance due to the supplier for the purchase made on July 31.
November 30:	CC&C recorded sales revenue in the amount of $216,000, half on credit and the other half paid in cash. Ignore Cost of Goods Sold.
December 20:	The customers who owed CC&C for the November 30 sales paid their balances in full with cash.

CC&C uses the following chart of accounts:

Assets

100    Cash 101    Accounts Receivable 102    Supplies 111 Equipment

Liabilities

200 Accounts Payable

Stockholders' Equity

300 Common Stock

Revenues

400 Sales Revenue

Expenses

503 Wage Expense

Prepare the journal entries in the general journal format for CC&C’s transactions using appropriate account numbers. Assume the journal entries are posted to the ledger.