Question

From the following transactions as well as additional data, please complete the entire accounting cycle for Parker’s Plowing (use the chart of accounts for 5A-3).
201X
Jan. 1 Parker invested $10,000 cash and $12,000 worth of snow equipment into the plowing company.
1 Paid rent for six months in advance for garage space, $6,000.
4 Purchased office equipment on account from Lumen Corp., $12,600.
6 Purchased snow supplies for $800 cash.
8 Collected $14,000 from plowing local shopping centers.
12 Parker Muroney withdrew $4,000 from the business for his own personal use.
20 Plowed Alton Co. parking lots, payment not to be received until May, $1,500.
26 Paid salaries to employees, $1,900.
28 Paid Lumen Corp. one-half amount owed for office equipment.
29 Advertising bill received from Washington Co. but will not be paid until May, $700.
30 Paid telephone bill, $130.
Adjustment Data
a. Snow supplies on hand, $700.
b. Rent expired, $1,000.
c. Depreciation on office equipment, $210: ($12,600/5 yr = $2,520/12 mo. = $210).
d. Depreciation on snow equipment, $200: ($12,000/5 yr = $2,400/12 mo. = $200).
e. Accrued salaries, $380.



$1.99
Sales3
Views196
Comments0
  • CreatedApril 24, 2014
  • Files Included
Post your question
5000