Question

Required information The following information applies to the questions displayed below.) Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions. 1. January 1 Issue 10,000 shares of common stock in exchange for $39,000 in cash. 2. January 5 Purchase land for $22,500. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $8,700 cash. 4. January 12 lire three employees for $2,700 per month 5. January 18 Receive cash of $12,700 in rental fees for the current month. 6. January 23 Purchase office supplies for $2,700 on account. 7. January 31 Pay employees $8,100 for the first month's salaries. 2. Post each transaction to T-accounts and calculate the ending balance for each account. For each posting, indicate the corresponding transaction number and the appropriate transaction amount. Since this is the first month of operations, all T-accounts have a beginning balance of zero.

Answer 1

Cash Supplies Beg. Bal. Beg. Bal. (1) 16 2,700 39,000 12,700 8,700 (3) 8,100 (7) (5) End. Bal. 2,700 End Bal. 34,900 Land Equipment Beg. Bal. Beg. Bal. 22,500 (3) 8,700 End. Bal. 22,500 End. Bal. 8,700 Common stock Accounts payable Beg. Bal. Beg. Bal. 39,000 (1) 2,700 (6) End. Bal. 39,000 End. Bal. 2,700 Notes payable Service revenue Beg. Bal. Beg. Bal. 22,500 (2) 12,700 (5) End. Bal. 22,500 End. Bal. 12,700 Salaries expense Beg. Bal. (7) 8,100 End. Bal. 8,100