Question

Abc Corporation was incorporated on December 1, 2019 and had following transactions during December

1 Dec Issued Capital for 5000 cash

 3 Dec Paid 1200 cash for three months rent in advance

 4 Dec Purchased a used truck for 10,000 on credit

 4 Dec Purchased Supplies of 1000 on credit

 6 Dec Paid 1800 for a one-year truck insurance policy

 7 Dec Billed a customer 4500 for work completed to date

 8 Dec Collected 800 for work completed to date

 12 Dec Paid the following expense in cash

 Advertisement 350

 Interest 100

 Telephone 75

 truck operating 425

 Wages 2500 

15 Dec Collected 2000 of the amount billed on 7 dec

 18 Dec Billed Customer 6500 for work completed to date

 19 Dec Signed a 9000 contract for work to be performed in Jan 2017

 22 Dec Paid the following Expenses

 Advertisement 200

 Interest 150

 Truck Operating 375

 Wages 2500

 27 Dec Collected advance on work to be done in January

 28 Dec Received a bill for 100 for electricity used during the month

Additional Information The following information relates t0 31 Dec , 2016 One month of the prepaid insurance has expired The December portion of the rent paid is expired A physical count indicates that 350 of supplies is still on hand The amount collected as advance is unearned Three days of wages for Dec 29 30 31 are unpaid: Unpaid amount of 1500 will be included in first wages payment in Jan The truck has an estimated useful life of 4 years Income tax expenses are 500. The amount is to be paid next year.

Required:

Prepare trasaction summary,general journal, entries to ledger account, trial balance,adjusted trial balnce, financial statemment(income statement,owners equity,balance sheet), close temporary accounts and worksheet.

Intructions: should be handwritten or word file depend on you

Answer 1