VOLS Inc. began its business operations on December 1, 2020. VOLS sells customized (with team's names on the seat) stadium seats and bleachers to various college and professional teams. During 2020, the following transactions occurred. You must record what happened in the 13 transactions by Trial Balance (Accounts names with debits and credits). Transactions occurring during 2020 at VOLS Inc.:

1 Dec.1: VOLS issues 40,000 shares of common stock ($1 par) at $10/share.

2 Dec.1: VOLS purchases a building for $60,000 by issuing a 1 year, 8% note payable. The building has a useful life of 20 years and no salvage value.

3 Dec. 4: VOLS purchases inventory of $250,000 (1,000 stadium seats at $250) from a supplier on account, terms 2/10, n/30.

4 Dec. 5: VOLS purchases painting supplies of $3,000 with cash.

5 Dec. 10: VOLS sells 600 stadium seats on account to various universities at $575/seat. The cost of the seats to VOLS were $250/seat.

6 Dec. 11: VOLS receives a payment from UTK for 300 seats that UTK purchased from VOLS on Dec. 10.

7 Dec. 12: VOLS pays for the Dec 4 purchase of inventory.

8 Dec. 15: VOLS pays $20,000 wages to its employees for work done Dec. 1-15 (previously unrecorded).

9 Dec. 31: VOLS declares and pays a dividend of $5,000 to its shareholders (declared and paid on Dec. 31)

10 Dec. 31: VOLS estimates that 1% of its credit sales (on account) will never be collectible.

11 Dec. 31: VOLS records interest related to the Dec. 1 note

12 Dec. 31: VOLS records straight-line depreciation for the Building purchased on Dec. 1.

13 Dec. 31: VOLS owes its employees $15,000 in wages from Dec.16th - Dec. 31st but has not paid them as of Dec. 31.

Answer rating: 100% (QA)

SNo Date Accounts Debit Credit 1 December 1 2020 Cash 4000010 400000 Common Stock 400001 40000 Paidi... View the full answer