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In: Accounting

The McMillan Corporation incorporated on September 2, 2019. The company engaged in the following transactions during...

  1. The McMillan Corporation incorporated on September 2, 2019. The company engaged in the following transactions during its first month of operations:

Sep 2: Issued Capital stock in exchange for $900,000 cash.

Sep 4: Purchased land and a building for $350,000. The value of the land was $50,000, and the value of the building was $300,000. The company paid $200,000 cash and issued a note payable for the balance.

Sep 5: Borrowed $50,000 from the bank by issuing a note payable.

Sep 6: Purchased office supplies for $1,000 on account. The supplies will last for several 10 months (Average usage is 100$ per month).

Sep 15: Paid the local newspaper $500 for a full page advertisement, in cash. The ad will appear in print On September 30.

Sep 19: performed services and billed clients $75,000 on account.

Sep 23: Received $ 15,000 cash in advance from a client for services to be performed at the end of the month.

Sep 28: Received $30,000 from clients billed on September 19.

  1. Record each of the above transactions in general journal form.

  1. Post each entry to the appropriate ledger accounts
  2. Prepare a trial balance dated September 30, 2019.

  1. Knowing that the company pays its employees on the beginning of the following month, and that September salaries are $16,000, prepare all the adjusting entries on September 30, 2019.

  1. Now post the adjusting entries to the appropriate accounts and prepare the adjusted trial balance.

  1. Prepare the income statement, statement of OE and the balance sheet of McMillan Corporation as of September 30, 2019.

Solutions

Expert Solution

a)

a)

b)Trial Balance Before passing adjusting entries

a)


a)

ekkarill92 answered 2 years ago
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