During the year 2022, the following transactions were made: 10/01/2022: Issued 850,000 shares of common stock...

Transcribed Image Text:

During the year 2022, the following transactions were made: 10/01/2022: Issued 850,000 shares of common stock for $25,000,000, which is the par value of the stock. 01/02/2022: Paid $24,000 for a business insurance policy covering the two-year period beginning on February 1. 22/02/2022: Purchased $750,000 of supplies on account. 01/03/2022 Acquired equipment in exchange for $1,000,000 cash and a $5,000,000 note payable. The note is due in 10 years. 02/03/2022: Paid wages of $275,000 23/03/2022: Billed $1,330,000 for services rendered on account. 01/04/2022: Paid $100,000 of the amount due on the supplies purchased on February 22. 17/04/2022: Collected $255,000 of the outstanding accounts receivable. 02/05/2022: Paid wages of $310,400. 09/05/2022: Received bill and paid $98,200 for utilities. 24/05/2022: Paid $35,500 for sales commissions. 01/06/2022: Made the first payment on the note issued on January 10. The payment consisted of $60,000 of interest and $200,000 to be applied against the principal of the note. 16/06/2022: Billed customers for $560,000 of services rendered. 30/06/2022: Collected $300,000 on accounts receivable. 10/07/2022: Purchased $155,000 of supplies on account. 25/08/2022: Paid $170,000 for administrative expenses. 23/09/2022: Paid $30,000 for warehouse repairs. 01/10/2022: Paid wages of $90,000. 20/11/2022: Purchased supplies for $60,000 with cash. 15/12/2022: Collected $125,600 in advance for services to be provided in December and January of the following year. 30/12/2022: Declared and paid a $50,000 dividend to shareholders. 1. Journalize the transactions for the year. 2. Post journal entries to the T accounts. 3. Prepare the unadjusted trial balance 4. Journalize the adjusting journal entries based on the following additional information: Eleven months of the insurance policy expired by the end of the year. Depreciation for the equipment is computed using the straight line depreciation method (residual value = $ 51 000 and the useful life = 10 years) There are $165,000 of supplies on hand at the end of the year. Wilson accrued wages in the amount of $150,000. An additional $170,000 of interest has accrued on the note by the end of the year. The company provided a portion of the services related to the advance collection of December. The company recognized $70,000 as service revenue earned. 5. Post adjusting entries to the T-accounts. 6. Prepare the adjusted trial balance During the year 2022, the following transactions were made: 10/01/2022: Issued 850,000 shares of common stock for $25,000,000, which is the par value of the stock. 01/02/2022: Paid $24,000 for a business insurance policy covering the two-year period beginning on February 1. 22/02/2022: Purchased $750,000 of supplies on account. 01/03/2022 Acquired equipment in exchange for $1,000,000 cash and a $5,000,000 note payable. The note is due in 10 years. 02/03/2022: Paid wages of $275,000 23/03/2022: Billed $1,330,000 for services rendered on account. 01/04/2022: Paid $100,000 of the amount due on the supplies purchased on February 22. 17/04/2022: Collected $255,000 of the outstanding accounts receivable. 02/05/2022: Paid wages of $310,400. 09/05/2022: Received bill and paid $98,200 for utilities. 24/05/2022: Paid $35,500 for sales commissions. 01/06/2022: Made the first payment on the note issued on January 10. The payment consisted of $60,000 of interest and $200,000 to be applied against the principal of the note. 16/06/2022: Billed customers for $560,000 of services rendered. 30/06/2022: Collected $300,000 on accounts receivable. 10/07/2022: Purchased $155,000 of supplies on account. 25/08/2022: Paid $170,000 for administrative expenses. 23/09/2022: Paid $30,000 for warehouse repairs. 01/10/2022: Paid wages of $90,000. 20/11/2022: Purchased supplies for $60,000 with cash. 15/12/2022: Collected $125,600 in advance for services to be provided in December and January of the following year. 30/12/2022: Declared and paid a $50,000 dividend to shareholders. 1. Journalize the transactions for the year. 2. Post journal entries to the T accounts. 3. Prepare the unadjusted trial balance 4. Journalize the adjusting journal entries based on the following additional information: Eleven months of the insurance policy expired by the end of the year. Depreciation for the equipment is computed using the straight line depreciation method (residual value = $ 51 000 and the useful life = 10 years) There are $165,000 of supplies on hand at the end of the year. Wilson accrued wages in the amount of $150,000. An additional $170,000 of interest has accrued on the note by the end of the year. The company provided a portion of the services related to the advance collection of December. The company recognized $70,000 as service revenue earned. 5. Post adjusting entries to the T-accounts. 6. Prepare the adjusted trial balance

Answer rating: 100% (QA)

1 Journalize the transactions for the year 10012022 Dr Cash 25000000 Cr Common Stock 25000000 01022022 Dr Prepaid Insurance 24000 Cr Cash 24000 22022022 Dr Supplies 750000 Cr Accounts Payable 750000 0... View the full answer