Rose Company started its operations on January 1, 2018. The following transactions took place during the...

Rose Company started its operations on January 1, 2018. The following transactions took place during the first month of operations:

January 1: Rose invests $1,150,000 cash to start the business.

January 3: Purchased furniture for $124,000, paying $24,000 in cash and sign a note for

the remaining balance.

January 7: Purchased office supplies for $5,000 on credit.

January 11: Paid $11,000 cash for January rent.

January 15: Paid $3,600 cash for office supplies purchased on January 7.

January 20: Services billed to customers amount to $64,000.

January 22: Received utility bills for $7,000 for the month of January.

January 25: Paid $31,600 cash as salaries for the month.

January 29: Received $44,000 cash from customers in payment for services billed on

January20.

January 31: Rose withdrew $10,400 from the business for personal use.

Required:

1-Using a table, show the effect of the above transactions on the accounting equation.

2- Prepare Journal entries to record the above transactions.

3- Post to the appropriate ledger accounts.

4- Prepare the trial balance on January 31 2018.

5. Prepare the financial statements of Rose Company on January 31 2018.

Note : the Answers should be computerized

Solutions

Expert Solution

ekkarill92 answered 11 months ago

Next > < Previous

Related Solutions

Maria Company started its operations on March 1, 2018. The following transactions took place during the...

Maria Company started its operations on March 1, 2018. The following transactions took place during the first month of operations: March 1: Maria invests $1,840,000 cash to start the business. March 4: Purchased furniture for $240,000, paying $100,000 in cash and sign a note for the remaining balance. March 9: Purchased supplies for $12,200 on credit. March 15: Paid $18,000 cash for March rent. March 18: Paid $4,200 cash for office supplies purchased on March 9. March 21: Services...

Jester Company began operations on January 1, 2018. The company had the following transactions in its...

Jester Company began operations on January 1, 2018. The company had the following transactions in its first year of business: • January 4: Owners invested $120,000 (the par value of the stock) in exchange for 20,000 shares of common stock. • February 2: Jester took out a 10-year note payable in the amount of $80,000 to pay for operating expenses. • Interest payments are due every six months, and the balance of the note will be paid off in a...

Jester Company began operations on January 1, 2018. The company had the following transactions in its...

Jester Company began operations on January 1, 2018. The company had the following transactions in its first year of business: January 4: Owners invested $120,000 (the par value of the stock) in exchange for 20,000 shares of common stock. February 2: Jester took out a 10-year note payable in the amount of $80,000 to pay for operating expenses. Interest payments are due every six months, and the balance of the note will be paid off in a lump-sum in 10...

The following list summarizes the transactions that took place during a start up’s secondyear of operations....

The following list summarizes the transactions that took place during a start up’s secondyear of operations. Using the information below(and assuming FIFO for inventory), prepare a list of the appropriate journal entries, including any necessary adjusting entries, and create a set of financial statements(i.e., balance sheet, income statement, and statement of cash flows).Once you have created the financial statements, provide the appropriate closing entries.Recall that there were 150 units of inventory,which had been purchased at $10 per unit, left at...

Maben Company was started on January 1, 2018, and experienced the following events during its first...

Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: Acquired $35,000 cash from the issue of common stock. Borrowed $47,000 cash from National Bank. Earned cash revenues of $63,000 for performing services. Paid cash expenses of $52,500. Paid a $2,500 cash dividend to the stockholders. Acquired an additional $35,000 cash from the issue of common stock. Paid $12,000 cash to reduce the principal balance of the bank note. Paid $46,000...

6. Scotti Company had the following transactions during the year 2018: *On January 1, 2018, its...

6. Scotti Company had the following transactions during the year 2018: *On January 1, 2018, its first year of business, Scotti Company issued 800,000 shares of $5 par value Common Stock for $18 per share. *On July 5, 2018, Scotti repurchased 200,000 shares at $20 per share. *On August 4, 2018, Scotti reissued 50,000 of its Treasury shares at $25 per share. *On September 15, 2018, Scotti reissued 50,000 of its Treasury shares at $23 per share. *On December 29,...

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three...

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $31,600, (2) paid cash expenses of $14,200, and (3) paid a $2,500 cash dividend to its stockholders. These were the only events that affected the company during 2018. Required Record the effects of each accounting event under the appropriate general ledger account headings. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet...

The following events took place for Sorensen Manufacturing Company during January, the first month of its...

The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $138,800 of materials. b. Used $94,780 of direct materials in production. c. Incurred $181,280 of direct labor wages. d. Incurred $213,200 of factory overhead. e. Transferred $428,060 of work in process to finished goods. f. Sold goods for $654,000. g. Sold goods with a cost of $360,750. h. Incurred $85,320 of selling expense. i....

UR Trading has started a new business selling stationaries. The following transactions took place during the...

UR Trading has started a new business selling stationaries. The following transactions took place during the month of January 20X1 No Date Transaction RM 1 3 Jan Invested cash in business 100,000 2 5 Jan Purchase goods on credit term from Pemadam Unggul Trading 20,000 3 11 Jan Credit sales to En Thiri 25,000 4 17 Jan Purchase furniture on cash 10,000 5 31 Jan Provide provision for doubtful debt for En Thiri @10% due to his shop burn 2,500...

The following transactions took place during the month of June 2018 for Syarikat Bam Buu. Date...

The following transactions took place during the month of June 2018 for Syarikat Bam Buu. Date Particular RM June 1 Started business with RM20,000 in bank. 7 Sold goods on credit to Syarikat Kam Yuu 3,000 10 Paid shop rental by cheque 1,100 12 Syarikat Kam Yuu returned goods 500 15 Withdrew cash from bank for personal use 1,200 18 Bought goods on credit from Syarikat Pelangi 2,000 20 Purchased an equipment on credit from Syarikat Awan 1,000 25 Returned...

Subjects