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General journal and ledger with explanation

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.