Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $20,000 cash. Paid $1,500 for advertising expense. Required a. Record the general journal entries for the preceding transactions. b. Post each of the entries to T-accounts. c. Prepare a trial balance to prove the equality of debits and credits.

The answer is given below

Explanation:

a. Cash        Dr.$30,000

Common stock  Cr.$30,000

Inventory  Dr.$15,000

Cash          Cr.$15,000

Cash    Dr.$20,000

Sales Revenue  Cr.$20,000

Cost of Goods Sold  Dr.$9,000

Inventory      Cr.$9,000

Advertising Expense  Dr.$1,500

Cash                            Cr.$1,500

b.                                                   Cash

                                    Dr.                                   Cr.

Common Stock         30,000        Inventory      15,000

Sales                           20,000        Advertising Exp  1,500

                                                      C/F                        33,500

                                           Common Stocks

                                    Dr.                                    Cr.  

           C/F 30,000                                               Cash         30,000

                                            Inventory  

                                 Dr.                                  Cr.

Cash                     15,000                    Cost of Goods Sold      9,000

                                                            C/F                                     6,000

                                           Sales

                               Dr.                                    Cr.

       C/F 20,000                                            Cash        20,000

                                              Cost of Goods Sold

                           Dr.                                                   Cr.

Inventory   9,000                                      C/F            9,000

                                      Advertising Expense

                         Dr.                                                  Cr.

Cash            1,500                                   C/F  1,500

c. Trail Balance

                                          Dr.                Cr.

Cash                                33,500

Common Stocks                                   30,000

Inventory                             6,000

Sales                                                     20,000

Cost of Goods sold           9,000

Advertising Expense        1,500

Total                                    50,000      50,000

Answer and Explanation:

With the help of commas I was able to distinguish various factors. For example in the start of the paragraph it says that 'with the birth of Sarah Pardee who was bor in in New Haven, Connecticut'. This helps us distinguish that New Haven is a place located in Connecticut.

Combining two independent sentences such as 'she was musically gifted, and knew how to charm all the men'.

The use of full stop also helped to end a sentence and start with a different one keeping the same subject in the loop.