A new corporation, ABC Corporation, was created on January 1 of the current year The following transactions
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Question:
A new corporation, ABC Corporation, was created on January 1 of the current year | ||||
The following transactions occurred during the month of January of the current year: | ||||
Date | Amount | |||
1-Jan | The owners put money into the corporation checking account in exchange for shares of common stock | 408,423 | ||
1-Jan | The corporation rented a building and paid the first six months rent | 64,786 | ||
1-Jan | The corporation bought equipment and furniture on account | 21,946 | ||
1-Jan | The corporation hired employees who will be paid the following for each month worked on the 10th of the following month | 15,851 | ||
5-Jan | The corporation bought supplies and paid cash | 81 | ||
7-Jan | The corporation bought inventory and paid cash | 43,381 | ||
10-Jan | The corporation advertised in the local newspaper and paid cash | 2,761 | ||
10-Jan | The corporaiton obtained one year of insurance and paid cash | 2,540 | ||
11-Jan | The corporation make cash sales | 162,062 | ||
14-Jan | The corporation make sales on account | 96,976 | ||
29-Jan | The corporation paid some of what it owed on account | 19,712 | ||
29-Jan | The corporation collected money owed to them on account | 51,009 | ||
31-Jan | The corporation paid a cash dividend to the shareholders | 44,998 | ||
Adjustment | Inventory remaining at the end of the month | 27,027 | ||
Adjustment | Supplies remaining at the end of the month | 34 | ||
Adjustment | The corporation decides to depreciate the furniture and equipment over 60 months | |||
Required: | ||||
1. Make the journal entries required for the month of January in the space below - explanations not needed. NOTE: Use accural accounting as taught in the class (56 points) | ||||
2. Make the adjusting entries required at the end of January in the space below - explanations not needed (24 points) | ||||
3. Create an adjusted trial balance in the space below (20 points) | ||||
4. Create an income statement, statement of owners' equity, and balance sheet in the spaces below (25, 25, and 25 points) |
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
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