eaners at January 1, 2018, includes the following Accounts Cash Accounts Receiva
ID: 2429731 • Letter: E
Question
eaners at January 1, 2018, includes the following Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Debits Credits $20,000 8,000 4,000 15,000 5,000 7,500 25,000 9.500 $47.000 $47.000 Totals The following is a summary of the transactions for the year a. March 12 Provide services to customers, $60,000, of which $21,000 is on account. b. May c. June d. August Pay salaries, $26,000 (of which $7,500 is for salaries payable in 2017). e. September 25 Pay repairs and maintenance expenses, $13,000. f October19 Purchase equipment for $8,000 cash. g. December 30 Pay $1,100 cash dividends to stockholders. 2 30 Collect on accounts receivable, $18,000. Issue shares of common stock in exchange for $6,000 cash. Required: 1. In addition to the accounts shown, the company also has accounts for Dividends, Service Revenue, Salaries Expense, Repairs and Maintenance Expense, Depreciation Expense, an Supplies Expense. 2. Journalize each of the summary transactions listed above. Post the transactions to the general ledger. Prepare the worksheet. Accrued salaries at year-end amounted to $1,100. Depreciation year on the equipment is $5,000. Office supplies remaining on hand at the end of the ye equal $1,200. Journalize and post the adjusting entries. Prepare an income statement and statement of stockholders equity for 2018 and a clas balance sheet as of December 31, 2018. Journalize and post the closing entries. Prepare a post-closing trial balance. 3. .Explanation / Answer
As per policy, only four parts of the question are allowed to answer at a time, so answering first four:
1) Journal Entries: Serial Date Accounts Titles Debit $ Credit $ a 12-Mar Cash 39000 AR 21000 Service revenue 60000 b 2-May Cash 18000 AR 18000 c 30-Jun Cash 6000 Common Stock 6000 d 1-Aug Salaries expense 18500 Salaries payable 7500 Cash 26000 e 25-Sep Repair & Maint exp 13000 cash 13000 f 19-Oct Equipment 8000 cash 8000 g 30-Dec Dividend 1100 Cash 1100 Adjusting Journal entries: 31-Dec Salaries exp 1100 Salaries payable 1100 (salaries payable booked) 31-Dec Dep exp 5000 Acc Dep 5000 (being dep booked) 31-Dec supplies exp 2800 Supplies 2800 (supplies at the end 1200)Related Questions
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