Use the chart of accounts you created in Chapter 1 (and add accounts where necessary) All of

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Use the chart of accounts you created in Chapter 1 (and add accounts where necessary) All of the first month’s activity for Shine King Cleaning is as follows.
Nov 1 Evan Hudson deposited $35,000 in the business account. Also on this date, Evan transferred his truck title, worth $8,000, to the business. Evan received 200 shares of no-par common stock in return.
2 Wrote a check for $2,000 to Pleasant Properties. In the “for” area of the check, it states “November through February Rent.” (Debit Prepaid rent)
3 Purchased business insurance policy for $2,400 for the term November 1, 2012, through October 31, 2013, and paid cash. (Debit Prepaid insurance)
4 Evan went to the Cleaning Supply Company and purchased S2’0 of cleaning supplies on account. The invoice is due 20 days from the date of purchase.
5 Purchased on account an industrial vacuum cleaner from Penny Purchase costing $1,000. The invoice is payable on or before November 25. Purchased a computer and printer costing a total of $1,200. A check for the same amount to the computer store was written on the same date.
9 Performed cleaning services on account for Pierre’s Wig Stand in the amount of $3,000.
10 Deposited Pierre’s check for $100 in the bank.
15 Wrote check payable to Eric Ryder for $500 for contract labor.
16 Received $3,600 for 1 year contract beginning November 16 for cleaning services to be provided to the Sea Side Restaurant. Contract begins November 16, 2012, and ends November 15, 2013. (Credit Unearned service revenue)
17 Provided cleaning services for Tip Top Solutions for $800. Tip Top paid with a check.
18 Received water and electric bill for $175 with due date of December 4, 2012.
20 Borrowed $40,000 from bank with interest at rate of 9% per year.
21 Deposited check from Pierre’s Wig Stand for $900, with the notation “on account.”
25 Wrote check to Penny Purchase for invoice #1035 in the amount of $500.
29 Wrote check payable to St. Petersburg News for $100 for advertising.
30 Paid dividends to Evan Hudson of $600.
Requirements
1. Journalize transactions as required from the activity data.
2. Post journal entries to T-accounts and calculate account balances.
3. Prepare the trial balance at November 30.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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