Question & Answer: Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required…..

Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required, state “No Entry.” Started business by issuing 10, 000 shares of capital stock for $20, 000. Signed a franchise agreement to pay royalties of 5% of sales. Leased a building for three years at $500 per month and paid six months’ rent in advance. Purchased equipment for $5, 400, paying $1, 000 down and signing a two-year, 10% note for the balance. Purchased $1, 800 of supplies on account. Recorded cash sales of $800 for the first week. Paid weekly wages, $320 Paid for supplies purchased in item (5). Paid royalties due on first week’s sales. Recorded depreciation on equipment, $50.