Sweet Dreams Chocolatiers Ltd began operations on

January 1 2011 #3653

Sweet Dreams Chocolatiers Ltd. began operations on January 1, 2011. During its first year, the
following transactions occurred:1. Issued common shares for $200,000 cash.2. Purchased
$475,000 of inventory on account.3. Sold inventory on account for $640,000. The original cost
of the inventory that was sold was $380,000.4. Collected $580,000 from customers on
account.5. Paid $430,000 to suppliers for the inventory previously purchased on account.6.
Bought a delivery vehicle for $36,000 cash.7. Paid $26,000 for rent, including $2,000 related to
the next year.8. Incurred $20,000 of other expenses, of which $18,000 was paid.9. Recorded
$2,000 of depreciation on the vehicle.10. Declared and paid dividends of $6,000.Required:a.
Prepare journal entries to record each of the above transactions.b. Create T accounts and post
the journal entries to the T accounts.c. Prepare a December 31, 2011, trial balance.View
Solution:
Sweet Dreams Chocolatiers Ltd began operations on January 1 2011

ANSWER
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