Question

Month of April

Date
April-01	Acquired $55000 to establish the company of which $33000 was received from an initial investment through the issue of common stock to themselves and $22000 from a bank loan by signing a note. The entire note is due in 5 years and has 7 per cent annual interest rate. Interest is payable in cash on March 31 of each year.
April-01	Paid $4200 (represents 3 months) in advance rent for a one-year lease on kitchen space.
April-01	Paid $35000 to purchase a refrigerator. The refrigerator is expected to have a useful life of 5 years and a salvage value of $5000 at the end of 5 years.
April-06	Purchased supplies for $500 for cash.
April-09	Received $700 cash as an advance payment from a client to be served in May.
April-10	Recorded sale to customers. Cash receipts were $700 and invoices for sales on account were $1500.
April-15	Paid $1460 cash for employee semi-monthly salaries.
April-16	Collected $400 from accounts receivable.
April-23	Received monthly utility bills amounting to $340. The bills are to be paid in May.
April-25	Paid advertising expense for advertisements run during April, $260.
April-30	Recorded services to customers . Cash receipts were $1300 and invoices for services on account were $1800.
April-30	Paid $1460 cash for employer salaries

Counted the supplies inventory on hand $55.

Required: -

a. Record the transactions for the month of April in a general journal.

b. Open general ledger accounts using the T-accounts provided and post the general journal entries to the ledger.

c. Record and post the appropriate adjusting entries.

d. Prepare an adjusted trial balance.

e. Prepare an income statement, statement of retained earnings, and a balance sheet for April.

Answer 1