Problem 3-2 Listed below are the accounts and their respective balances for Jelly, Inc. at December 31, 20X1: $ 300,000 100,000 30,000 3,000 10,000 Cash Inventory (5 things @ $ 20,000 each) Land Security Deposit Taxes Payable Note Payable Common Stock (2,000 shares) Retained Earnings During 20X2 the following transactions occurred: 100,000 105,000 218,000 Purchased 11 things at $20,000 each. Paid 60% down and will pay the rest later. Sold 10 things for $35,000 each. Paid 20X1 taxes payable. Paid cash for wages of $80,000. 5 Paid rent of $12,000. July 1: Sold 500 shares of stock to new shareholders, $20,000. 7 Paid interest on the note at 5%. Paid a $5,000 dividend to shareholders on December 31, 20X2. Also, during the year the company paid 50% of the 20X2 taxes. The tax rate is 30%. At Dec 31, 20X2, 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. It is a shallow life that doesn't give a person a few scars. -Garrison Keillor Every time you wake up and ask yourself, "What good things am I going to do today?" remember that, when the sun goes down at sunset, it will take a part of your life with it. Dreams don't just come true, you make dreams come true.

Listed below are the accounts and their respective balances for Jelly, Ine. at December 31, 20X1: During 20X2 the following transactions occurred: Purchased 11 things at $20,000 each. Paid 60% down and will pay the rest later. Sold 10 things for $35,000 each. 3 Paid 20X1 taxes payable. Paid cash for wages of $80,000. 5 Paid rent of $12,000. 4 July 1: Sold 500 shares of stock to new shareholders, $20,000. 7 Paid interest on the note at 5%. 8 Paid a $5,000 dividend to shareholders on December 31,20X2. Also, during the year the company paid 50% of the 202 taxes. The tax rate is 30%. At Dec 31, 20X2, 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. It is a shallow life that doesn't give a person a few scars. -Garrison Keillor Every time you wake up and ask yourself, "What good things am I going to do today?" remember that, when the sun goes down at sunset, it will take a part of your life with it. Dreams don't just come true, you make dreams come true