During the first month of operations, OShea Plumbing, Inc., completed the following transactions: Jan 2O Shea received
Question:
During the first month of operations, O’Shea Plumbing, Inc., completed the following transactions:
Jan 2O Shea received $33,000 cash and issued common stock to the stockholders.
3 Purchased supplies, $400, and equipment, $2,900, on account.
4 Performed service for a client and received cash, $1,700.
7 Paid cash to acquire land, $22,000.
11 Performed service for a customer and billed the customer, $1,100.
We expect to collect within one month.
16 Paid for the equipment purchased January 3 on account.
17 Paid the telephone bill, $130.
18Received partial payment from customer on account, $550.
22 Paid the water and electricity bills, $150.
29 Received $1,100 cash for servicing the heating unit of a customer.
31 Paid employee salary, $2,300.
31 Declared and paid dividends of $2,900.
Requirements
1. Record each transaction in the journal. Key each transaction by date. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting references.
3. Prepare the trial balance of O’Shea Plumbing, Inc., at January 31 of the current year.
4. The manager asks you how much in total resources the business has to work with, how much it owes, and whether January was profitable (and by how much).
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas