Question

Prepare an accounting journal, general ledger, trial balance,multiple step income statement and owner's equity statement for the following.

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1. APR-1 the JW-Corp Received $200,000 in Exchange for 40,000 shares of Common Stock.
2. APR-1 the JW-Corp Borrowed $150,000 from US-Bank on a Note, Due in 5 Years with 8% Interest Paid Monthly.
3. APR-2 the JW-Corp Purchased a Building for $360,000 (25 year life), with $60,000 Cash Down Payment and signed a Note with SCHWAB BANK for the Remainder Due in 10 Years with Interest Due Monthly at a 6% Rate.
4. APR-2 the JW-Corp purchased a Delivery Truck (5 Year and 200,000 Mile Life) for $90,000 on a Note Due with FORD Corp with Interest Accrued Monthly at a 12% Rate. The Total Interest and Principal are DUE in 6 Months.
5. APR-5 = JW-Corp received $105,000 from the TARGET Corp for BIKES we Will Deliver Later.
6. APR-6 = JW-Corp Purchased 1500 BIKES at $88 Each on Account from SPECIALIZED Corp.
   1. FYI = JW-Corp uses a Perpetual FIFO Inventory System
7. APR-7 = JW-Corp Purchased 2000 BIKES at $95 Each on Account from SPECIALIZED Corp.
8. APR-10 = JW-Corp paid this Month’s Rent Expense of $18,000 with a Check
9. APR-15 = JW-Corp received this Month’s Phone Bill from ATT for $7,000 to pay Later.
10. APR-18 = JW-Corp received this Month’s Utility Bill from PGE for $8,000 to be paid Later.
11. APR-19 = JW-Corp Sold 1000 BIKES for $210 each on account to the COSTCO Corp.
12. APR-20 = JW-Corp Sold and Delivered 1100 BIKES for $180 each to the TARGET Corp. from the Order and Check received in Trans#5. We Billed the Customer the Remainder on Account.
13. APR-22 = JW-Corp Paid $161,000 with a Check to SPECIALIZED Corp on Account.
14. APR-24 = JW-Corp Sold 1200 BIKES to the COSTCO Corp for $175 each, on account.
15. APR-25 = JW-Corp received a check from COSTCO Corp for $233,000 on account.
16. APR-26 = JW-Corp paid $29,000 for Current Months Salaries with a Check.
17. APR-27= JW-Corp bought Back 5,000 Shares of Common Stock from Investors for $3.00 per Share with Electronic Transfers of Cash to the Stock Brokerage Firm.
18. APR-28 = JW-Corp Paid Dividends of $2.20 per Share to Current Shareholders via EFT.
19. APR-29 = JW-Corp Recorded the Following Items from the monthly Bank Reconciliation.
    1. Bank Fees Expense of $400, Investment Income of $1,400
20. APR-30 = JW-Corp Recorded the Estimated Allowance for Un-collectible accounts at 5.00% of The Month End TOTAL Accounts Receivable Balance.
21. APR-30 = JW-Corp recorded one month of Interest Expense Paid on the US BANK Loan. Tr#2
22. APR-30 = JW-Corp recorded one month of Interest Expense Paid to Schwab Bank. Tran#3
23. APR-30 = JW-Corp recorded one month of Interest Expense PAYABLE to Ford Later. Tran#4
24. APR-30 = JW-Corp recorded Depreciation Expense on the Building (Tran#3) for the Month using the Straight-Line Method.
25. APR-30 = JW-Corp recorded Depreciation Expense on the Truck (Tran#4) Using the Units-of –Production-Activity Method. The Truck was Driven 12,000 Miles during the Month.
26. APR-30 = JW-Corp Recorded Income Tax Expense Payable for the Month, at 30% Tax Rate.

Answer 1

Date	Account Titles	Debit	Credit
		$	$
Apr 1	Cash	200,000
	Common Stock		200,000
Apr 1	Cash	150,000
	Notes Payable		150,000
Apr 2	Building	360,000
	Cash		60,000
	Notes Payable		300,000
Apr 2	Delivery Truck	90,000
	Notes Payable		90,000
Apr 5	Cash	105,000
	Unearned Revenue		105,000
Apr 6	Inventory	132,000
	Accounts Payable		132,000
Apr 7	Inventory	190,000
	Accounts Payable		190,000
Apr 10	Rent Expense	18,000
	Cash		18,000
Apr 15	Telephone Expense	7,000
	Accounts Payable		7,000
Apr 18	Utilities Expense	8,000
	Accounts Payable		8,000
Apr 19	Accounts Receivable	210,000
	Sales Revenue		210,000
Apr 19	Cost of Goods Sold	88,000
	Inventory		88,000
Apr 20	Unearned Revenue	105,000
	Accounts Receivable	93,000
	Sales Revenue		198,000
Apr 20	Cost of Goods Sold ( 500 units @ $ 88 +600 units @ $ 95)	101,000
	Inventory		100,000
Apr 22	Accounts Payable	161,000
	Cash		161,000
Apr 24	Accounts Receivable	210,000
	Sales Revenue		210,000
Apr 24	Cost of Goods Sold ( 1,200 units @ $ 95)	114,000
	Inventory		114,000
Apr 25	Cash	233,000
	Accounts Receivable		233,000
Apr 26	Salaries Expense	29,000
	Cash		29,000
Apr 27	Treasury Stock	15,000
	Cash		15,000
Apr 28	Dividends ( 40,000 - 5,000 ) shares x $ 2.20	77,000
	Cash		77,000
Apr 29	Bank Fees Expense	400
	Cash		400
Apr 29	Cash	1,400
	Investment Income		1,400
Apr 30	Bad Debt Expense	14,000
	Allowance for Doubtful Accounts		14,000
Apr 30	Interest Expense	1,000
	Cash		1,000
Apr 30	Interest Expense	1,500
	Cash		1,500
Apr 30	Interest Expense	900
	Interest Payable		900
Apr 30	Depreciation Expense: Buildings ( $ 360,000 / 25 x 1 / 12 )	1,200
	Accumulated Depreciation : Buildings		1,200
Apr 30	Depreciation Expense: Delivery Truck ( $ 90,000 / 200,000 x 12,000)	5,400
	Accumulated Depreciation : Delivery Truck		5,400
Apr 30	Income Tax Expense	69,000
	Income Taxes Payable		69,000

JW-Corp Trial Balance April 30
Account Titles	Debit	Credit
	$	$
Cash	326,500
Accounts Receivable	280,000
Allowance for Doubtful Accounts		14,000
Inventory	19,000
Delivery Truck	90,000
Accumulated Depreciation: Delivery Truck		5,400
Building	360,000
Accumulated Depreciation: Building		1,200
Accounts Payable		176,000
Income Taxes Payable		69,000
Interest Payable		900
Notes Payable: Short Term		90,000
Notes Payable: Long Term		450,000
Common Stock		200,000
Treasury Stock	15,000
Retained Earnings		0
Dividends	77,000
Sales Revenue		618,000
Investment Income		1,400
Cost of Goods Sold	303,000
Salaries Expense	29,000
Rent Expense	18,000
Telephone Expense	7,000
Utilities Expense	8,000
Bad Debt Expense	14,000
Bank Fees Expense	400
Depreciation Expense: Buildings	1,200
Depreciation Expense: Delivery Truck	5,400
Interest Expense	3,400
Income Tax Expense	69,000
Totals	$ 1,625,900	$1,625,900