Halogen Laminated Products Company began business on January 1,

Halogen Laminated Products Company began business on January 1, 2011. During January, the following transactions occurred:


Jan. 1Issued common stock in exchange for $100,000 cash.

2 Purchased inventory on account for $35,000 (the perpetual inventory system is used).

4Paid an insurance company $2,400 for a one-year insurance policy.

10 Sold merchandise on account for $12,000. The cost of the merchandise was $7,000.

15Borrowed $30,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.

20Paid employees $6,000 wages for the first half of the month.

22Sold merchandise for $10,000 cash. The cost of the merchandise was $6,000.

24Paid $15,000 to suppliers for the merchandise purchased on January 2.

26Collected $6,000 on account from customers.

28 Paid $1,000 to the local utility company for January gas and electricity.

30 Paid $4,000 rent for the building. $2,000 was for January rent, and $2,000 for February rent.


Required:

1. Prepare general journal entries to record each transaction. Omit explanations.

2. Post the entries to T-accounts.

3. Prepare an unadjusted trial balance as of January 30, 2011.


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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