ABC Company had the following transactions for the month of January: January 1: The company purchased equipment
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Question:
ABC Company had the following transactions for the month of January:
- January 1: The company purchased equipment for $10,000, paying $5,000 in cash and signing a note payable for the remainder.
- January 5: The company provided services to a customer for $2,000, receiving $1,500 in cash and billing the customer for the remainder.
- January 10: The company paid rent of $1,000 for the month.
- January 15: The company paid wages to employees totaling $3,000.
- January 20: The company received a bill from a supplier for $1,500 for materials purchased on credit.
- January 25: The company collected $1,000 from customers who had previously been billed for services.
- January 31: The company paid $500 in interest on the note payable from transaction 1.
Required:
- Prepare the journal entries to record the above transactions in the company's general journal.
- Post the journal entries to the appropriate accounts in the company's general ledger.
- Prepare a trial balance as at January 31, 20X1.
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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