Reference no: EM131772758

You are beginning a new corporation starting Jan 1st. The company name is (your name) Inc. Enter the transactions listed on the transaction sheet...
This question was answered on Dec 23, 2016. View the Answer
Date Transaction 01-Jan Issued 25,000 shares of $1 par common stock for $10 each Hired a receptionist at a salary of $600 payable each week. Purchased $200,000 equipment paying 10% down payment and signed an 8% 10 year note for the remainder , payments will be made on the first of each month beginning in February Set up a $200 petty cash fund Paid $4,800 cash for a 24 month insurance policy effective Jan 1st of this year ( a nominal account was debited) Received $50,000 from clients as an advanced payment for services to be performed (a real account was credited) 07-Jan Paid receptionist weekly salary of $600 Purchased $10,000 of inventory on account terms 2/10, n/30 , the company uses perpetual inventory method Sold merchandise that cost $2,000 to XYZ for $2,900 cash 14-Jan Paid the telephone bill for $120 Sold merchandise that cost $3,000 to ABC for $3,900 terms 1/15, n/30 Paid $5,000 rent for Jan-May (a nominal account was debited) Paid receptionist weekly salary of $600 21-Jan Paid utility bill for $260 Sold merchandise that cost $1,000 on account to DEF company for $1,300 Purchased $ 5400 of supplies for cash ( a real account was debited) ABC returned one third of their earlier purchase ABC paid the total amount due Paid for the inventory purchased on Jan 7th Declared a dividend of $.10 per share to be paid to the owner of record on Jan 28th. The payment date is Jan 31st. Paid receptionist weekly salary of $600 28-Jan Received payment of $800 from DEF company Paid receptionist weekly salary of $600 Purchased $5,ooo of merchandise terms 2/10 n/30 fob destination Sold merchandise that cost $2,000 to PQR for $2,900 cash 31-Jan Replenished the petty cash fund.The balance in the fund was $12.A summary of the the petty cash expenditures is as follows: delivery charges paid on merchandise purchased supplies purchased postage expense miscellaneous expense Paid for the inventory purchased on Jan 28th Paid the dividend delcared on Jan 21st End of Month 31-Jan Accrued the interest on the note for the month Services performed but unbilled total $3,400 Salaries earned by the receptionist of $150 have not been recorded Bad debt expense for the month is estimated to be $150 Supplies on hand are $1,000 $42,000 of the fees collected on Jan 1st were earned during the month The equipment has a useful life of 5 years and a $10,000 salvage value. Use straight line depreciation Hint: are there any others? s

1. You are beginning a new corporation starting Jan 1st. The company name is (your name) Inc. Enter the transactions listed on the transaction sheet into the general journal.

2. Post the transactions to the general ledger.

3. Prepare a trial balance

4. Journalize the month end adjusting entries in the general journal. Post them to the general ledger.

5. Prepare an adjusted trial balance.

6. Prepare an income statement, retained earnings statement, & balance sheet.

7. Prepare the closing entry in the general journal then post in the general ledger.

8. Prepare a post closing trial balance.