Question

How do you prepare the financial statements given the following information: 1-Dec Began business by depositing $7500 in a bank account in the name of the company in exchange for 750 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $650 . 1-Dec Paid the premium on a one-year insurance policy, $840 . 1-Dec Purchased Equipment for $3600 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $6000 cash. 16-Dec Provided service to customers ABC Inc. on account, $3400 . 21-Dec Received $1800 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $5040 . 30-Dec Declared and paid dividend to stockholders $200 .

Answer 1

01-Dec	Cash	7500
	Common stock		7500
01-Dec	rent expense	650
	Cash		650
01-Dec	Prepaid insurance	840
	Cash		840
01-Dec	Equipment	3600
	Cash		3600
05-Dec	Office supplies	300
	Accounts payable		300
15-Dec	Cash	6000
	Service revenue		6000
16-Dec	Accounts receivable	3400
	Service revenue		3400
21-Dec	Cash	1800
	Accounts receivable		1800
23-Dec	Accounts payable	170
	Cash		170
28-Dec	Salaries and Wages expense	5040
	Cash		5040
30-Dec	Dividend	200
	Cash		200
	Trial balance
	Cash	4800
	Accounts receivable	1600
	Prepaid insurance	840
	Office supplies	300
	Equipment	3600
	Accounts payable		130
	Common stock		7500
	Service revenue		9400
	Dividend	200
	Rent expense	650
	Salaries and wages expense	5040
	Total	17030	17030