Question

The following events apply to Paradise Vacation’s first year of operations.
1. Acquired $20,000 cash from the issue of common stock on January 1, 2014.
2. Purchased $800 of supplies on account.
3. Paid $4,200 cash in advance for a one-year lease on office space.
4. Earned $28,000 of revenue on account.
5. Incurred $12,500 of other operating expenses on account.
6. Collected $24,000 cash from accounts receivable.
7. Paid $9,000 cash on accounts payable.
8. Paid a $3,000 cash dividend to the stockholders.
Information for Adjusting Entries
9. There was $150 of supplies on hand at the end of the accounting period.
10. The lease on the office space covered a one-year period beginning November 1.
11. There was $3,600 of accrued salaries at the end of the period.

Required
a. Record these transactions in general journal form.
b. Post the transaction data from the journal to ledger T-accounts.
c. Prepare a trial balance.
d. Prepare an income statement, statement of changes in stockholders’ equity, a balance sheet, and a statement of cash flows.



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  • CreatedMay 22, 2014
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