Reference no: EM131711993
Question -
December 2: Porier received $ 38, 000 cash and issued common stock to the stockholders.
December 3: Purchased supplies, $ 400, and equipment,$ 2,600, on account.
December 4: Performed services for a client and received cash, $ 1,500.
December 7: Paid cash to acquire land, $ 30, 000.
December 11: Performed services for a customer and billed the customer, $ 800. Porier expects to collect within one month.
December 16: Paid for the equipment purchased December 3 on account.
December 17: Paid the telephone bill, $ 180.
December 18: Received partial payment from customer on account, $ 400. (same as December 11th).
December 22: Paid the water and electricity bills, $ 200.
December 29: Received $ 1,500 cash for servicing the heating unit of a customer.
December 31: Paid employee salary, $ 2, 400.
December 31: Declared and paid dividends of $ 2, 200.
Requirements:
1. Record each transaction in the journal. Key each transaction by date. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting references.
3. Prepare the trial balance of Porier Heating and Air Conditioning, Inc., at December31 of the current year.
4. The manager asks you how much in total resources the business has to work with, how much it owes, and whether December was profitable (and by how much).