Hagen Corporation opened the year 20X6, with the following trial balance information: Debits Credits Cash 100,000...

  

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Hagen Corporation opened the year 20X6, with the following trial balance information: Debits Credits Cash 100,000 s Accounts Receivable 300,000 Land 600,000 Accounts Payable 240,000 Loan Payable 120,000 Capital Stock 200,000 Retained Earnings 440,000 Dividends Revenues Salaries Expense Rent Expense Supplies Expense Interest Expense 1,000,000 1,000,000 January's transactions are listed below: Jan. 2 Collected $40,000 on an open account receivable. Jan. 3 Purchased additional tract of land for $80,000 cash. Jan. 5 Provided services on account to a customer for $60,000. Jan. 7 Borrowed $48,000 on a term loan payable. Paid salaries of $12,000. Jan. 11 Jan. 12 Provided services to customers for cash, $44,000. Jan. 15 Purchased (and used) office supplies on account, $8,000. Jan. 17 The company paid shareholders a $10,000 dividend. Jan. 20 Paid rent of $6,800. t ofs Jan. 23 Paid salaries of $16,000. Jan. 24 Paid $64,000 on the open accounts payable. Jan. 29 Collected $200,000 on accounts receivable. Jan. 31 Repaid loans of $88,000. Jan. 31 Paid interest on loans of $2,400. a) Create the general ledger accounts, and enter the initial balances at the start of the month of January. This requirement is already completed on the worksheets b) Prepare journal entries for January's transactions. c) Post January's transactions to the appropriate general ledger accounts. d) Prepare a trial balance as of January 31. e) Prepare an income statement and statement of retained earnings for January, and a balance sheet as of the end of January. Hagen Corporation opened the year 20X6, with the following trial balance information: Debits Credits Cash 100,000 s Accounts Receivable 300,000 Land 600,000 Accounts Payable 240,000 Loan Payable 120,000 Capital Stock 200,000 Retained Earnings 440,000 Dividends Revenues Salaries Expense Rent Expense Supplies Expense Interest Expense 1,000,000 1,000,000 January's transactions are listed below: Jan. 2 Collected $40,000 on an open account receivable. Jan. 3 Purchased additional tract of land for $80,000 cash. Jan. 5 Provided services on account to a customer for $60,000. Jan. 7 Borrowed $48,000 on a term loan payable. Paid salaries of $12,000. Jan. 11 Jan. 12 Provided services to customers for cash, $44,000. Jan. 15 Purchased (and used) office supplies on account, $8,000. Jan. 17 The company paid shareholders a $10,000 dividend. Jan. 20 Paid rent of $6,800. t ofs Jan. 23 Paid salaries of $16,000. Jan. 24 Paid $64,000 on the open accounts payable. Jan. 29 Collected $200,000 on accounts receivable. Jan. 31 Repaid loans of $88,000. Jan. 31 Paid interest on loans of $2,400. a) Create the general ledger accounts, and enter the initial balances at the start of the month of January. This requirement is already completed on the worksheets b) Prepare journal entries for January's transactions. c) Post January's transactions to the appropriate general ledger accounts. d) Prepare a trial balance as of January 31. e) Prepare an income statement and statement of retained earnings for January, and a balance sheet as of the end of January.

Answer rating: 100% (QA)

b JOURNALISING THE JANUARYS TRANSACTIONS Debit Amount in Credit Amount in Jan 2 2016 Cash account 40000 To Account Receivables 40000 Cash collected from customers on account Jan 3 2016 Land account 80... View the full answer