Bumblebee Corporation started operations on January 2, 20X8 and experienced the following events during the year ended
Question:
Bumblebee Corporation started operations on January 2, 20X8 and experienced the following events during the year ended December 31, 20X8:
1. The company sold shares of common stock for $10,000.
2. The company borrowed $5,000 from a local bank.
3. The company provided services to customers on account and billed $10,000.
4. The company received $3,600 on April 1, 20X8, from a customer and committed to provide monthly services under a one-year contract.
5. The company paid $5,000 to purchase land.
6. The company incurred and paid employee salary expenses of $4,000.
7. The company collected $8,000 from customers’ previous sales on account.
8. The company paid $1,200 for an insurance policy that covered the company for one year beginning August 1, 20X8.
9. The company paid $1,000 in dividends to its stockholders.
10. The company received a bill on December 30 for $3,000 for gas and electricity used in 20X8, due on January 10, 20X9.
Required
A. Prepare a transactions record for BumbleBee Corporation for 20X8.
B. Make any necessary year-end adjusting entries. Be sure to label any adjusting entries to correspond to the transaction being adjusted.
C. Prepare four financial statements: • Income Statement • Statement of Changes in Stockholders’ Equity • Balance Sheet • Statement of Cash Flows
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura