Shipping Inc.?s transactions during January 2019:

1. Jan. 1 - Issued 7,500 shares of no-par common stock for $10 per share.
2. Jan. 1 - Purchased a machine for $40,000. Monthly depreciation for the machine is $600.
3. Jan. 6 - Purchased office supplies on account for $8,000.
4. Jan. 10 - Performed repairs and maintenance on their computer equipment costing $3,500.
5. Jan. 12 - Purchased inventory for $75,000.
6. Jan. 15 - Declared and paid $1,500 in dividends to its shareholders.
7. Jan. 20 - Paid $8,000 for the supplies purchased on January 6.
8. Jan. 22 - Paid $50,000 to its suppliers for inventory purchased on credit in December 2018
9. Jan. 25 - Provided services for which a customer had paid $7,000 in December of 2018 (hint: see the deferred revenue account in the January 1, 2019 trial balance).
10. Jan. 31 - Paid its employees $28,000 for work performed from December 26 ? January 25. $4,800 was for work performed in December 2018, and 23,200 was for work performed from January 1 ? January 25, 2019.
11. During January Shipping Inc. collected $125,000 in accounts receivable. (Make a summary entry for the entire month).
12. During January Shipping Inc. made credit sales for $160,000. The cost of the goods sold was $70,000. (Make summary entries for the entire month).

Other information:

1. At the end of January, Shipping Inc. had $1,800 of office supplies on hand.
2. Monthly depreciation for the Furniture & Fixtures is $500, and monthly depreciation for the computer equipment is $350.
3. The note payable for $20,000 is a 5-year note that matures on December 31, 2022. The interest on the note is 9% and is payable annually on each December 31^st. Shipping Inc. made their regularly scheduled interest payment of $1,800 on December 31, 2018.
4. During the period January 26 ? January 31 employees earned an additional $2,500 which will be included in their February paycheck.

Prepare an ending trial balance and T Accounts.

Transcribed Image Text:

Trial Balance Summary As of January 1, 2019 Description Cash Accounts Receivable Inventory Supplies Furniture & Fixtures Computer Equipment Accum. Dep. - F & F Accum. Dep. - Comp. Eqp Accounts Payable Salaries Payable Notes Payable Deferred Revenue Common Stock Retained Earnings Total Debit 82,500.00 93,000.00 78,000.00 2,000.00 25,000.00 16,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 296,500.00 Credit 0.00 0.00 0.00 0.00 0.00 3,500.00 4,000.00 92,200.00 4,800.00 20,000.00 7,000.00 60,000.00 105,000.00 296,500.00 Trial Balance Summary As of January 1, 2019 Description Cash Accounts Receivable Inventory Supplies Furniture & Fixtures Computer Equipment Accum. Dep. - F & F Accum. Dep. - Comp. Eqp Accounts Payable Salaries Payable Notes Payable Deferred Revenue Common Stock Retained Earnings Total Debit 82,500.00 93,000.00 78,000.00 2,000.00 25,000.00 16,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 296,500.00 Credit 0.00 0.00 0.00 0.00 0.00 3,500.00 4,000.00 92,200.00 4,800.00 20,000.00 7,000.00 60,000.00 105,000.00 296,500.00