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.