Accounting Transactions of Cheyenne Corp. in January 2022
What are the selected transactions that occurred in January for Cheyenne Corp.?
How does Cheyenne Corp. record these transactions?
Selected Transactions:
1. Borrowed $28,800 cash from Apex Bank.
2. Sold merchandise for cash totaling $7,102, including sales taxes.
3. Performed services for customers with advance payments of $10,000.
4. Paid state treasurer's department $7,080 for sales taxes collected in December 2021.
5. Sold 600 units of a new product on credit at $48 per unit, plus 6% sales tax.
January was a busy month for Cheyenne Corp. as they engaged in various transactions to grow their business. Let's take a closer look at each transaction:
Borrowing Cash from Apex Bank:
On January 1, 2022, Cheyenne Corp. borrowed $28,800 in cash from Apex Bank, which will be paid back at a later date with interest.
Selling Merchandise for Cash:
On January 5, the company sold merchandise for cash, generating revenue of $7,102, including sales taxes.
Performing Services for Customers:
On January 12, Cheyenne Corp. provided services to customers who had made advance payments of $10,000, recognizing this as revenue.
Paying Sales Taxes:
On January 14, the company paid $7,080 to the state treasurer's department for sales taxes collected in the previous month.
Selling New Product on Credit:
Lastly, on January 20, Cheyenne Corp. made credit sales of 600 units of a new product, totaling $30,720, including sales tax.
These transactions showcase the growth and financial activities of Cheyenne Corp. as they continue to serve customers and expand their product offerings.