Newman, Inc. was formed on January 1, 2016. The following transactions took place during the first month.
Transactions on January 1, 2016:
John Newman invested $60,000 for 1,000 shares of the company’s no-par common stock.
Signed a $30,000 note payable due in one year with an interest rate of 12%.
Purchased equipment costing $36,000. Equipment has a 10-year life and no salvage value. The company will use the straight-line method.
Paid $10,800 cash for a one-year insurance policy.
Transactions during the remainder of the month:
Purchased office supplies for $9,000 on the account.
Total revenues earned were $30,000. The amount of $6,000 was received in cash and the remaining $24,000 was on the account.
Paid $2,400 of the amount owed for the supplies purchased on account in transaction 5.
Received $18,000 from customers in partial payment of the accounts receivable created in transaction 6.
Declared and paid a dividend of $3,000.
Prepare journal entries to record each of the events listed above.
Post the journal entries to T accounts
Prepare a trial balance. Additional information for adjusting entries:
Supplies on hand at end of the month were $1,800.
Prepare required adjusting journal entries.
Post the adjusting journal entries to T accounts
Prepare an adjusted trial balance.
Prepare Income Statement
Prepare Statement of Retained Earnings
Prepare a Classified Balance Sheet
Prepare and post Closing entries

Answer rating: 100% (QA)

Journal Entry Date Particular Amount Amount 1Jan Cash 600000... View the full answer