How do you prepare the financial statements given the following information: 1-D

Question

How do you prepare the financial statements given the following information: 1-Dec Began business by depositing $7500 in a bank account in the name of the company in exchange for 750 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $650 . 1-Dec Paid the premium on a one-year insurance policy, $840 . 1-Dec Purchased Equipment for $3600 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $6000 cash. 16-Dec Provided service to customers ABC Inc. on account, $3400 . 21-Dec Received $1800 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $5040 . 30-Dec Declared and paid dividend to stockholders $200 .

Explanation / Answer

01-Dec Cash 7500         Common stock 7500 01-Dec rent expense 650            Cash 650 01-Dec Prepaid insurance 840            Cash 840 01-Dec Equipment 3600             Cash 3600 05-Dec Office supplies 300            Accounts payable 300 15-Dec Cash 6000            Service revenue 6000 16-Dec Accounts receivable 3400            Service revenue 3400 21-Dec Cash 1800           Accounts receivable 1800 23-Dec Accounts payable 170            Cash 170 28-Dec Salaries and Wages expense 5040             Cash 5040 30-Dec Dividend 200            Cash 200 Trial balance Cash 4800 Accounts receivable 1600 Prepaid insurance 840 Office supplies 300 Equipment 3600 Accounts payable 130 Common stock 7500 Service revenue 9400 Dividend 200 Rent expense 650 Salaries and wages expense 5040 Total 17030 17030

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