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    General journal and ledger with explanation

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    The following is a list of transactions from Danny and Mary Jane's first month of business:

    May 1 Danny and Mary Jane deposited $50,000 into business checking account
    May 1 Rented theater building for shows - paid 6 months rent up front - $24,000
    May 1 Purchased six-month insurance policy to cover rented building and customers - $3,000
    May 1 Paid utility deposits - $250
    May 5 Purchased advertisements in local newspapers and radio stations, $2,500
    May 6 Purchased stage props and costumes for opening night - $1,200
    May 10 Opening night was a success! Danny and MaryJane sold 100 tickets at $10 each
    May 15 The remainder of the first week ticket sales totaled $2,000
    May 16 Paid workers for first week of services - $1,000
    May 22 Second week ticket sales totaled $2,400
    May 23 Paid workers for second week of services - $1,000
    May 29 Third week ticket sales totaled $3,000
    May 30 Paid workers for third week of services - $1,000

    Using the journal and ledger forms provided with a trial balance after closing accounts. Journalize and post the first month's transactions. Additionally, in a memo to Danny and Mary Jane, summarize the month's transactions and comment on what they might do to improve for upcoming months.

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    Being 1st month of the business, the business generated revenue of $8400. Rent & Insurance has been prepaid in advance for 6 months. The advertisement ...

    Solution Summary

    The solution provide General journal and ledger with explanation for Danny & Mary Jane for their first month of business.