Reference no: EM131794856

PART A: Prepare journal entries for the following transactions:

1.       ABC Company issued 10,000 shares of $1 par value common stock for $5 per share.

2.       ABC Company purchased $5,000 of supplies with cash.

3.       ABC Company purchased a piece of office equipment of $10,000 on account.

4.       ABC Company purchased $2,500 of inventory with cash.

5.       ABC Company sold all $2,500 of inventory for $6,000 of cash (two entries needed).

6.       ABC Company paid their employees $1,500 of salary expense with cash.

7.       ABC Company received a $500 utility bill and recorded it, but it has not yet been paid.

8.       ABC Company issued/paid a $2,000 dividend.

PART B: Prepare the Income Statement, Statement of Owner's Equity and Balance Sheet from the following Trial Balance:

	ABC Company
	Adjusted Trial Balance
	For the Year Ended December 31, 2016
	Debits	Credits
Cash	50,400
Accounts Receivable	10,800
Prepaid Insurance	1,000
Supplies	5,000
Land	198,000
Building	113,330
Accumulated Depreciation-Building		115,000
Accounts Payable		9,000
Salaries and Wages Payable		7,000
Unearned Revenues		3,000
Common Stock		100,000
Sales Revenue		225,000
Salaries and Wage Expense	50,000
Advertising Expense	2,500
Utilities Expense	10,400
Depreciation Expense - Building	8,000
Insurance Expense	3,000
Supplies Expense	2,250
Miscellaneous Expense	4,320
Totals	459,000	459,000