Question

Golden Hurricane Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
1. Issue 10,000 shares of common stock in exchange for $45,000 in cash.
2. Purchase land for $27,700. A note payable is signed for the full amount.
3. Purchase storage container equipment for $11,500 cash.
4. Hire three employees for $3,600 per month.
5. Receive cash of $38,000 in rental fees for the current month.
6. Purchase office supplies for $4,500 on account.
7. Pay employees $6,900 for the first month’s salaries.

Required:
1. Record each transaction. Golden Hurricane uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.
2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero.
3. After calculating the ending balance of each account, prepare a trial balance.



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  • CreatedJuly 15, 2014
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