Reference no: EM132933734
a. Issued common stock for $5,000 cash
b. Paid $1,200 cash for three months' rent: December 2019; January and February 2020
c. Purchased a used truck for $10,000 on credit (recorded as an account payable)
d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense)
e. Paid $1,800 for a one-year truck insurance policy, effective December 1
f. Billed a customer $4,500 for work completed to date g. Collected $800 for work completed to date
h. Paid the following expenses in cash: advertising, $350; interest, $100; telephone, $75; truck operating, $425; wages, $2,500
i. Collected $2,000 of the amount billed in f above
j. Billed customers $6,500 for work completed to date
k. Signed a $9,000 contract for work to be performed in January 2020
l. Paid the following expenses in cash: advertising, $200; interest, $150; truck operating, $375; wages, $2,500
m. Collected a $2,000 advance on work to be done in January (the policy of the corporation is to record such advances as revenue at the time they are received)
n. Received a bill for $100 for electricity used during the month (recorded as utilities expense).
Problem 1: Prepare journal entries to record the December transactions. General ledger account numbers and descriptions are not needed.
Problem 2: Post the entries to general ledger T-accounts.