Question

A partial list of transactions from We Do Windows Company during 2010 follows:
a. In January, Keith and Rachel each donated $22,500 in exchange for common stock to start the business.
b. On February 1, the company paid $6,000 for two years rent in advance.
c. During the year, the company purchased $10,000 of supplies for cash.
d. On March 15, 2010, the shop obtained necessary equipment for $12,000 cash. The equipment should last for five years. The company will take a full year of depreciation in 2010.
e. On April 1, 2010, the shop paid an annual insurance premium of $1,000, for coverage beginning April 1.
f. On June 1, 2010, to increase business, the company paid for a year of advertising for $1,020.
g. On November 1, 2010, the company obtained a three-month loan for $30,000 at 4.5% from Three Rivers Bank payable on February 1, 2011.
h. As of December 31, 2010, cash revenues totaled $30,000.
i. In December, the company entered into a contract with a local rental company to do all its window washing in 2011 for $8,000, payable in four installments. The first installment was collected from the rental company in December 2010.
j. On December 31, the company paid $1,000 in cash dividends.
At the end of the year, remaining supplies totaled $2,000.

Requirements
1. Give the journal entries for the transactions; include any adjusting entries.
2. Post the transactions to T-accounts and prepare the adjusted trial balance at December 31, 2010.
3. Prepare the closing entries and post-closing trial balance for We Do Windows Company at December 31, 2010.



$1.99
Sales0
Views139
Comments0
  • CreatedSeptember 01, 2014
  • Files Included
Post your question
5000