Question

During the period ended 12/31/x1

March 1- the company was formed with $2,000,000 shares authorized- $1 value

March 20- the company issued stocks for $200,000 at per value

April 7th-Purchased supplies for $6,000 on account

April 28-Paid 2,200 to get a patent on their special wash soap

May 10-Purchased inventory for $45,000. The company uses the LIFO method under perpetual system to account for inventory

May19th - purchased equipment with a note payable of $50,000 due in 5 years. The company used the straight-line method for depreciation. The note requires annual principal payment of $10,000

May 31th- purchase two parcels of land for $62,000 parcel A was $10,000 and Parcel B was $52,000. Parcel A was used to build a storage facility. They do not know what they will do with parcel B so the intention is to just hold it.

June 1st- purchased two year of insurance for $8,000

June26- Provided goods to a customer worth $18000. Inventory had a cost of $9,200. The customer paid $8,000 cash and the rest on account.

June 7th- Provided goods of $33,000 to a customer for cash. Inventory had a cost of $12,400

July 26-paid employee wages of $6,500

August 9th- Customer paid $5,00 for goods to be provided in the future.

August 17th- Received $12,000 on account for good provided in the future

Sept10th- Invested $7,000 of excess cash in securities- intend to hold them for several years.

Sept21th-collected $5,000 from a customer that owed you money for goods previously provided.

Sept29th- Some of the $5,000 worth equipment purchased on May19th was sold for $2,000.

Oct1st. Paid rent for the period of $15,000 for the next year

Oct19th- Received interest income on investments of $1,000

Nov 8th- Received a utility bill for $2,000 for utility services received.(Paid on account)

November27th-Paid $2,500 of the amount owed for supplies.

December15th- paid dividend of $5,000

PLEASE MAKE

1. General journal

1. Journal entries - full proper journal entry with descriptions

2. Post entries to ledger

2. Ledger- T accounts

1. Show beginning balance

2. Post all activity- make sure to include reference to journal entry

3. Show ending balance

3. Trial balance

1. Unadjusted Trial Balance

5 thumbs READY WHEN YOU ANSWER  

Answer 1

DATE	PATICULARS	L/F	DEBIT	CREDIT
March 20	Cash/Bank A/c                                ….Dr To Common stock A/c (Being stock issued )		$200000	$200000
April 7th	Purchase A/c                                  ….Dr To Cash A/c (Being supplies purchased)		$6000	$6000
April 28	Patent A/c                                       ….Dr To Cash A/c              (Being paid for patent)		$2200	$2200
May 10	Purchase A/c                                  ….Dr To Inventory A/c (Being inventory purchased)		$45000	$45000
May19th	Equipment A/c                                ….Dr To Bills payable A/c (Being equipment purchased)		$50000	$50000
May 31th	Land A/c                                         ….Dr To Cash A/c (Being parcel of land purchased)		$62000	$62000
June 1st	Insurance A/c                                 ….Dr To Cash A/c (Being amount paid for insurance)		$8000	$8000
June26	Cash A/c                                         ….Dr Customer A/c                                 ….Dr To Sales A/c (Being goods sold)		$8000 $10000	$18000
June 7th	Cash A/c                                         ….Dr To Sales A/c (Being goods sold)		$33000	$33000
July 26	Wages A/c                                    ….Dr To Cash A/c (Being wages paid to employees)		$6500	$6500
August 9th	Cash A/c                                       ….Dr To Advance A/c (Being payment received in advance)		$500	$500
August 17th	Account Payable A/c                   .…Dr                            To Advance A/c (Being payment received in advance)		$12000	$12000
Sept10th	Investment A/c                             ….Dr To Cash A/c (Being investment made in securities)		$7000	$7000
Sept21th	Cash A/c                                        ….Dr To Customer A/c (Being payment received from customer)		$5000	$5000
Sept29th	Cash A/c                                        ….Dr Loss on sale A/c                           ….Dr To Equipment A/c (Being equipment sold at loss of $3000)		$2000 $3000	$5000
Oct1st	Prepaid Rent A/c                          ….Dr To Rent A/c (Being rent for next year paid in advance)		$15000	$15000
Oct19th	Cash A/c                                        ….Dr To Interest A/c (Being interest received on investment)		$1000	$1000
Nov 8th	Utility Bill A/c                                ….Dr To Accounts Payable A/c (Being bill paid on account)		$2000	$2000
November27th	Account Payable A/c                    …Dr To Cash A/c (Being paid for supplies)		$2500	$2500
December15th	Dividend A/c                                 ….Dr To Cash A/c (Being dividend paid)		$5000	$5000