Question

In: Accounting

Green Wave Company plans to own and operate a storage rental facility. For the first month...

Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.

1. January 1 Issue 10,000 shares of common stock in exchange for $40,000 in cash.
2. January 5 Purchase land for $23,000. A note payable is signed for the full amount.
3. January 9 Purchase storage container equipment for $8,800 cash.
4. January 12 Hire three employees for $2,800 per month.
5. January 18 Receive cash of $12,800 in rental fees for the current month.
6. January 23 Purchase office supplies for $2,800 on account.
7. January 31 Pay employees $8,400 for the first month's salaries.

Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 7). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

Issue 10,000 shares of common stock in exchange for $40,000 in cash.

Date Account Title Debit Credit
January 01

Purchase land for $23,000. A note payable is signed for the full amount.

Date Account Title Debit Credit
January 05

Purchase storage container equipment for $8,800 cash.

Date Account Title Debit Credit
January 09

Hire three employees for $2,800 per month.

Date Account Title Debit Credit
January 12

Receive cash of $12,800 in rental fees for the current month.

Date Account Title Debit Credit
January 18

Purchase office supplies for $2,800 on account.

Date Account Title Debit Credit
January 23
Date Account Title Debit Credit
January 31

add GENERAL LEDGER
ADD TRIAL BALANCE

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