Module $4$ Homework

Problem $4-1$

Listed below are the accounts and their respective balances for Jelly, Inc. at December $31,20$X$1$:

During $20$X$2$ the following transactions occurred:

Purchased $11$ things at $$20,000$ each. Paid $60\%$ down and will pay the rest later.

Sold $12$ things for $$32,000$ each.

Paid $20$X$1$ taxes payable.

Paid cash for wages of $$80,000.$

Paid rent of $$12,000.$

July $1$: Sold $500$ shares of stock to new shareholders, received $$20,000.$

Paid interest on the note at $5\%.$

Paid a $$5,000$ dividend to shareholders on December $31,20$ X $2.$

Also, during the year the company paid $50\%$ of the $20$ X $2$ taxes. The tax rate is $30\%.$

At Dec $31,20$X$2,$ the company owed $$7,000$ in salaries which had not yet been paid.

Prepare Journal Entries and T$-$Accounts, Income Statement, Statement of Owner's Equity,

and Balance Sheet.