Transactions during 2020 follow: 

a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. 

b. Purchased equipment for $18,000 cash on July 1, 2020. 

c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. 

d. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. 

e. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash.

f. Purchased additional small tools, $3,000 cash. 

g. Collected accounts receivable, $8,000. h. Paid accounts payable, $11,000. i. Purchased $10,000 of supplies on account.

 j. Received a $3,000 deposit on work to start January 15, 2021. 

k. Declared a cash dividend on December 1, $10,000; paid on December 31. Data for adjusting entries: 

l. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). 

m. Depreciation for 2020, $2,000. 

n. Interest accrued on notes payable (to be computed). 

o. Wages earned since the December 24 payroll but not yet paid, $3,000. 

p. Income tax expense was $4,000, payable in 2021. 

REQUIRED: Post the journal entries for transactions (a) through (k) and adjusting entries for transactions (l) through (p) to the respective T-Accounts.

Cash					Accounts Receivable
Beg. bal.					Beg. bal.
					End. bal.	0
End. bal.	0
Supplies					Small Tools
Beg. bal.					Beg. bal.
End. bal.	0				End. bal.	0
Equipment					Accumulated Depreciation
Beg. bal.					Beg. bal.
End. bal.	0				End. bal.		0
Other Assets					Accounts Payable
Beg. bal.					Beg. bal.
End. bal.	0				End. bal.		0
Notes Payable					Dividends Payable
Beg. bal.					Beg. bal.
End. bal.		0			End. bal.		0
Wages Payable					Interest Payable
Beg. bal.					Beg. bal.
End. bal.		0			End. bal.		0
Income Taxes Payable					Unearned Revenue
Beg. bal.					Beg. bal.
End. bal.		0			End. bal.		0
Common Stock					Additional Paid-in Capital
Beg. bal.					Beg. bal.
End. bal.	0				End. bal.		0
Retained Earnings					Service Revenue
Beg. bal.					Beg. bal.
End. bal.		0			End. bal.		0
Income Tax Expense					Interest Expense
Beg. bal.					Beg. bal.
End. bal.		0			End. bal.		0
Depreciation Expense					Wages Expense
Beg. bal.					Beg. bal.
End. bal.		0			End. bal.		0
Miscellaneous expenses
Beg. bal.
End. bal.		0

Transcribed Image Text:

Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows: Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit 5,000 4,000 2,000 6,000 Cash Accounts receivable Supplies Small tools Equipment Accumulated depreciation (on equipment) Other assets (not detailed to simplify) Accounts payable Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60,000 shares, s0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses 9,000 7,000 6,000 9,000 4,000 Totals 26,000 26,000 Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows: Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit 5,000 4,000 2,000 6,000 Cash Accounts receivable Supplies Small tools Equipment Accumulated depreciation (on equipment) Other assets (not detailed to simplify) Accounts payable Dividends payable Notes payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60,000 shares, s0.10 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses 9,000 7,000 6,000 9,000 4,000 Totals 26,000 26,000

Answer rating: 100% (QA)

step 1 step 2 step3 step4 Answer Journal entries SNO Gener... View the full answer