Reference no: EM132245839
Assignment -
The following transactions took place for Cooper Corporation during November, 2019, its first month of operation. The first transaction took place on November 1 and the company issued and sold $30,000 of its shares. Record this as the first transaction then proceed to record the following entries. All entries were done in the month of November.
1 Purchased a computer for $2,000 cash.
2 Borrowed $100,000 cash from bank by acquiring a bank loan.
3 Paid $3,000 for office supplies. The supplies were put into the inventory storeroom.
4 Paid for a 1-year insurance policy for the business, amount paid $5,000.
5 Billed customers $20,000 for services rendered.
8 Collected $8,000 in cash for services rendered today.
10 Purchase $5,000 of additional supplies on credit.
15 Received $5,000 in cash from customers billed on November 5th.
18 Paid $1,000 for advertising that ran for the first two weeks of this month.
20 Applied for a $20,000 government grant for research and development.
22 Paid 2,000 on the November 10th purchase.
23 Earned $2,000 in interest revenue. The full amount was deposited into the business bank.
25 Paid the following expenses in cash: Legal fees, $3,000; telephone $500; vehicle maintenance, $6,000 Wages, $15,000.
27 Paid the landlord $8,000 in rent. This includes the rent for November and a prepayment of rent for the next 3 months.
Required:
1. Open general ledger T-accounts for the following (account numbers are indicated in brackets): Cash (110), Accounts Receivable (120), Prepaid Rent (150), Prepaid insurance (170), Office Supplies (180), Computer(200),Accounts Payable (215), Bank loan (220)Share Capital (325), Repair Revenue (450), Interest revenue (470), Advertising Expense (615), Rent Expense (655), Legal fees (660), Telephone Expense (665), Vehicle Maintenance Expense (670), and Wages Expense (675).
2. Prepare journal entries to record the November transactions.
3. Post the November entries to the T-accounts.
4. Prepare a trial balance at the end of November, 2019
5. Prepare an income statement and statement of changes in equity for the month ended November and a statement of financial position for month end as well.