1 Required: Post the following transactions to the T-Accounts, then prepare 12/3

Question

1 Required: Post the following transactions to the T-Accounts, then prepare 12/31/2006 Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flow 07/01/2006 Collected $80,000 on Accounts Receivable 7 15/0112006 Sold an additional 100,000 shares at $5 per share 9 01/02/2006 Made a sale of $90,000 on account. Cost of inventory sold was $65,000 10 1115/02/2006 Bought merchandise inventory for $70,000 cash 12 3 01/03/2006 Paid vendors $16,000 cash on Accounts Payable 14 15 30/06/2006 Made payment of $25,000 on Notes Payable 16 17 01107/2006 Purchased $10,000 worth of store equipment for Cash 19 30/112006 Made a sale of merchandise for $50,000 cash which reduced inventory $30,000 20 21 15/12/2006 Declared and paid a $20,000 dividend to shareholders 23 31/12/2006 Recorded $3,000 Rent Income from Unearned Income 24 25 31/12/2006 Recorded Depreciation for year on equipment of $1.000 26 27 31/12/2006 Recorded expiration of 1-year prepaid rent expense for $2,000 28 29 31/12/2006 Soid equipment for $1,000 cash which cost 51,000 when purchased new 30 31 32 The equipment was sold before recording any depreciation 34

Explanation / Answer

4) Cash Flow not possible as Opening Balance Sheet is not available, so increase or decrease in Cash flow not possible.

1) T-Accounts: DEBIT AMOUNT$ CREDIT AMOUNT$ ACCOUNTS RECEIVABLE A/C: 1-Feb 90000 7-Jan 80000 cb 10000 CASH A/C: 7-Jan 80000 15-Feb 70000 15-Jan 500000 1-Mar 16000 30-Nov 50000 30-Jun 25000 31-Dec 1000 1-Jul 10000 15-Dec 20000 cb 490000 SHARE CAPITAL A/C: 15-Jan 500000 SALES A/C: cb 140000 1-Feb 90000 30-Nov 50000 Cost of Inventory Sold A/C: 1-Feb 65000 cb 95000 30-Nov 30000 Inventory A/C: 15-Feb 70000 1-Feb 65000 cb 25000 30-Nov 30000 Accounts Payable A/C: 1-Mar 16000 Notes Payable A/C: 30-Jun 25000 Equipment A/C: 1-Jul 10000 31-Dec 1000 cb 9000 Dividend A/c: 15-Dec 20000 Rent Income A/C: 31-Dec 3000 Unearned Income A/C: 31-Dec 3000 Depreciation exp A/C: 31-Dec 1000 Acc. Dep. - Eq. A/c: 31-Dec 1000 Rent expense A/C: 31-Dec 2000 Prepaid rent A/C: 31-Dec 2000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.