Question

Post the following transactions to the T-Accounts, then prepare 12/31/2006
	Balance Sheet, Income Statement, Statement of Retained Earnings, and
	Statement of Cash Flow.
1/7/06	Collected $80,000 on Accounts Receivable
1/15/06	Sold an additional 100,000 shares at $5 per share
2/1/06	Made a sale of $90,000 on account. Cost of inventory sold was $65,000
2/15/06	Bought merchandise inventory for $70,000 cash
3/1/06	Paid vendors $16,000 cash on Accounts Payable
6/30/06	Made payment of $25,000 on Notes Payable
7/1/06	Purchased $10,000 worth of store equipment for Cash.
11/30/06	Made a sale of merchandise for $50,000 cash which reduced inventory $30,000
12/15/06	Declared and paid a $20,000 dividend to shareholders
12/31/06	Recorded $3,000 Rent Income from Unearned Income
12/31/06	Recorded Depreciation for year on equipment of $1,000
12/31/06	Recorded expiration of 1-year prepaid rent expense for $2,000
12/31/06	Sold equipment for $1,000 cash which cost $1,000 when purchased new.
	The equipment was sold before recording any depreciation

Answer 1

Cash
Date	Transaction	Debit $	Transaction	Credit $
1/7/2006	Accounts receivable	80,000
1/15/2006	Common stock	500,000
2/15/2006			Inventory	70,000
3/1/2006			Accounts payable	16,000
6/30/2006			Notes Payable	25,000
7/1/2006			Store Equipment	10,000
11/30/2006	Sales	50,000
12/15/2006			Dividend	20,000
12/31/2006	Store Equipment	1,000	Ending Balance	490,000
	TOTAL	631,000	TOTAL	631,000
Accounts receivable
Date	Transaction	Debit $	Transaction	Credit $
1/7/2006			Cash	80,000
2/1/2006	Sales	90,000
12/31/2006			Ending Balance	10,000
	TOTAL	90,000	TOTAL	90,000
Common stock
Date	Transaction	Debit $	Transaction	Credit $
1/15/2006			Cash	500,000
	TOTAL		TOTAL	500,000
Sales
Date	Transaction	Debit $	Transaction	Credit $
2/1/2006			Accounts receivable	90,000
11/30/2006			Cash	50,000
			TOTAL	140,000
Cost of goods sold
Date	Transaction	Debit $	Transaction	Credit $
2/1/2006	Inventory	65,000
11/30/2006	Inventory	30,000
	TOTAL	95,000
Inventory
Date	Transaction	Debit $	Transaction	Credit $
2/1/2006			Cost of goods sold	65,000
2/15/2006	Cash	70,000
11/30/2006			Cost of goods sold	30,000
12/31/2006
Accounts payable
Date	Transaction	Debit $	Transaction	Credit $
3/1/2006	Cash	16,000
Notes Payable
Date	Transaction	Debit $	Transaction	Credit $
6/30/2006	Cash	25,000
Store Equipment
Date	Transaction	Debit $	Transaction	Credit $
7/1/2006	Cash	10,000
12/31/2006			Cash	1,000
12/31/2006			Ending balance	9,000
Dividend
Date	Transaction	Debit $	Transaction	Credit $
12/15/2006	Cash	20,000
Rent Income
Date	Transaction	Debit $	Transaction	Credit $
12/31/2006			Unearned Income	3,000
Unearned Income
Date	Transaction	Debit $	Transaction	Credit $
12/31/2006	Rent Income	3,000
Deprecition Expenses
Date	Transaction	Debit $	Transaction	Credit $
12/31/2006	Accumulated depreciation-Equipment	1,000
Accumulated depreciation-Equipment
Date	Transaction	Debit $	Transaction	Credit $
12/31/2006			Deprecition Expenses	1,000
Prepaid Rent
Date	Transaction	Debit $	Transaction	Credit $
12/31/2006			Rent Expenses	2,000
Rent Expenses
Date	Transaction	Debit $	Transaction	Credit $
12/31/2006	Prepaid Rent	2,000

Income Statement
	Amount $	Amount $
Sales	140,000
Less: Cost of goods sold	(95,000)
Gross income		45,000
Other income;
Rent income		3,000
Less: Operating expenses
Deprecition Expenses	1,000
Rent Expenses	2,000
Total operating expenses		(3,000)
Net income		45,000
Note: The given informations are not sufficient to prepare balance sheet and cash flow statement.