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ABC Corporation had been formed on September 1, 20xx to repairautomobiles.
Requirements:
A) Record the following transactions for the current month inthe General Journal using the account titles from the followingChart of Accounts.
Cash, Accounts recievable, prepaid insurance, equipment,accounts payable, invole taxes payable, dividends payable, unearnedrevenue, common stock, retained earnings, dividends, repairedrevenue, salaries expense, supplies expense, Depreciation expense,equipment, utility expense, insurance expense, income tax expense,income summary.
1. Sold 10,000 shares of stock for $10,000 2. Bought equipment for $6,000 cash 3. Purchased supplies for $2,000 on account 4. Bought a one year insurance policy for $6,000 cash 5. Paid secretary $800 for the month 6. Earned $5,000 for repair work completed. Customer to paynext month 7. Recieved $50 deposit on a repair hich has yet to becompleted 8. Declared a dividend of $1,000
B) Post the Journal entries to the General Ledger attached andcalculate the nding balance in each account. Make sure to includethe beginning balances in the total.
C) Prepare the trial balance
D) Record the following adjusting journal entries in theGeneral Journal and then post them to the General Ledger
1. Record depreciation on the equipment for one month. Assumestraight line depreciation. Assume a 5 year useful life. 2. An electric bill has been recieved for $600 related to themonth just completed. It will be paid at the beginning of the nextmonth. 3. Record the inshrance expense for the next month. 4. Supplies not used as of the end of the month total$1,300. 5. The repair work oted in transaction #7 in part A of thisproblem have been completed during the month. 6. Income taxes expense for the month is $400.
E) Prepare an adjusted trial balance.
F) Prepare the income statement, the statement of retainedearnings and balance sheet. Make sure you prepare a proper headingfor each statement.
G) Record the necessary closing journal entries in the Generaljournal and post those journal entries to the General Ledger.
H) Record the necessary closing Journal entries in the GeneralJournal and post those journal entries to the General ledger.
I) Prepare an after closing trial balance.
Related questions
On March 1, Sather Co. sold merchandise to Boone Co. on account, $31,800, terms 2/15, n/30. The cost of the merchandise sold is $19,000. The merchandise was paid for on March 14.
Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate companyâs Chart of Accounts for exact wording of account titles.
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| Boone Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Vaughn Weller, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.
| 1. | Performed services for patients who had dental plan insurance. At January 31, $721 of such services was performed but not yet billed to the insurance companies. | |
| 2. | Utility expenses incurred but not paid prior to January 31 totaled $523. | |
| 3. | Purchased dental equipment on January 1 for $88,000, paying $20,000 in cash and signing a $68,000, 3-year note payable. (a) The equipment depreciates $408 per month. (b) Interest is $540 per month. | |
| 4. | Purchased a one-year malpractice insurance policy on January 1 for $11,160. | |
| 5. | Purchased $1,449 of dental supplies. On January 31, determined that $470 of supplies were on hand. |
Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation-Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expenses, and Utilities Payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
| No. | Account Titles and Explanation | Debit | Credit |
On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:
| Cash | B. Bangle, Drawing |
| Supplies | Laundry Revenue |
| Prepaid Insurance | Wages Expense |
| Equipment | Rent Expense |
| Furniture and Fixtures | Utilities Expense |
| Accounts Payable | Miscellaneous Expense |
| B. Bangle, Capital |
The following transactions were completed during May:
Bangle deposited $35,000 in a bank account in the name of the business.
Bought chairs and tables (Furniture and Fixtures), paying cash, $1,870, Ck. No. 1000.
Bought supplies on account from Barnes Supply Company, $225.
Paid the rent for the current month, $875, Ck. No. 1001.
Bought washing machines and dryers (Equipment) from Lara Equipment Company, $12,500, paying $3,600 in cash and placing the balance on account, Ck. No. 1002.
Sold services for cash for the first half of the month, $1,925.
Bought insurance for one year, $1,560, Ck. No. 1003.
Paid on account to Lara Equipment Company, $1,800, Ck. No. 1004.
Received and paid electric bill, $285, Ck. No. 1005.
Sold services for cash for the second half of the month, $1,835.
Paid wages to an employee, $940, Ck. No. 1006.
Bangle withdrew cash for his personal use, $800, Ck. No. 1007.
Paid on account to Barnes Supply Company, $225, Ck. No. 1008.
Received and paid bill from the county for sidewalk repair assessment, $280, Ck. No. 1009 (Miscellaneous Expense).
Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
Record the transactions in the T accounts. Record the amounts in the order given (letters 'a' through 'n').
Foot the T accounts and show the balances.
Trial balance is $45860
