The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts...
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The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par $1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained earnings Supplies Short-term notes payable Short-term investments Utilities payable Balance $32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019: 1. Received $40,000 from customers for services provided in December 2018. 2. Paid $8,450 in advance for 3 months of rent. 3. Purchased inventory of $9,500 on account. 4. Issued 10,500 shares of common stock for $30,000. 5. Paid $1,260 for utilities incurred in December 2018. 6. Purchased US Bonds for $6,000 redeemable 1/31/22. 7. Sold land in exchange for $4,200 cash and a $25,000 note due 4/1/19. 8. Paid $8,275 in exchange for a pizza oven. 9. Signed a $10,800 six-month notes payable for the CEO's personal use. 10. Declared and paid dividends of $3,000. Required: a. Prepare the journal entry for each January transaction. b. Create T-accounts with beginning balances. Post each journal entry to the appropriate T- account and determine the ending balances. Create new accounts as necessary. c. Prepare a classified balance sheet at January 31, 2019 in proper form. d. Prepare the investing and financing sections of Pepper's statement of cash flows for the month ended January 31, 2019. The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par $1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained earnings Supplies Short-term notes payable Short-term investments Utilities payable Balance $32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019: 1. Received $40,000 from customers for services provided in December 2018. 2. Paid $8,450 in advance for 3 months of rent. 3. Purchased inventory of $9,500 on account. 4. Issued 10,500 shares of common stock for $30,000. 5. Paid $1,260 for utilities incurred in December 2018. 6. Purchased US Bonds for $6,000 redeemable 1/31/22. 7. Sold land in exchange for $4,200 cash and a $25,000 note due 4/1/19. 8. Paid $8,275 in exchange for a pizza oven. 9. Signed a $10,800 six-month notes payable for the CEO's personal use. 10. Declared and paid dividends of $3,000. Required: a. Prepare the journal entry for each January transaction. b. Create T-accounts with beginning balances. Post each journal entry to the appropriate T- account and determine the ending balances. Create new accounts as necessary. c. Prepare a classified balance sheet at January 31, 2019 in proper form. d. Prepare the investing and financing sections of Pepper's statement of cash flows for the month ended January 31, 2019.
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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