Reference no: EM131411172
$65,000 for cash and $125,000 on account.
4. Purchased land for $32,000.
5. Borrowed $75,000 on December 31. The note payable matures in two years.
6. Salaries totaling $80,000 were paid during the year.
7. Other expenses totaling $40,000 were paid during the year.
8. $56,000 was received from customers as payment on account.
9. Declared and paid a dividend of $26,000.
REQUIRED:
a. Prepare journal entries for these transactions.
b. Establish T-accounts for each account, and post the journal entries to these T-accounts.
c. Prepare an income statement, statement of shareholders' equity, a December 31, 2012, balance sheet, and statement of cash flows for 2012.
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