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Directions: a. Record journal entries for the January 2019 transactions. b. Prepare T-accounts for each of...

Directions:

a. Record journal entries for the January 2019 transactions.

b. Prepare T-accounts for each of the accounts provided. Enter beginning balances. Record each of the January transactions in the T-accounts and calculate ending balance for each account. Create new accounts as necessary.

c. Prepare a statement of income for the month of January in good form.

The following account balances are provided for Green Goblin Corporation at December 31, 2018:

Title Balance

Accounts payable $65,000

Accounts receivable 90,000

Bank loan due June 1, 2020 154,000

Cash 45,000

Commissions payable 12,000

Salaries and wages payable 16,000

Common stock (no par) 200,000

Equipment (net) 318,750

Interest payable 1200

Interest receivable 450

Investments 33,000

Prepaid expenses 28,000

Retained earnings 71,700

Supplies 25,000

Unearned revenue 32,000

All January 2019 transactions follow:

1. Provided services on account for a total of $375,000.

2. Provided services worth $23,000 paid for in prior months.

3. Used $14,000 in supplies.

4. Sold equipment with book value of $23,000 for $19,000 cash.

5. Paid accounts payable of $51,500.

6. Collected $346,000 on customer accounts.

7. Issued common stock for $125,000.

8. Purchased a vehicle worth $50,000 in exchange for a note payable due on March 1, 2020.

9. Paid $195,000 in salaries, including $16,000 owed from the month of December 2018

10. Paid $83,000 in commissions including those owed at December 31.

11. Collected $18,500 for services to be provided in March.

12. Received a $2,500 bill for December utilities.

13. Paid $2,250 for January and February radio advertisements.

14. Received an interest payment of $900 including the interest accrued at 12/31/2018.

15. Paid $12,000 for January rent.

16. Paid income tax expense of $28,706.

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Answer #1

Journal in in Date Particulars Debit Credit Accounts Receivable Service Income To record service provided on account) 1 3,75,9 Salaries and wages expenses (195000-16000) Salaries and wages Payable Cash To record cash payment for salaries expenses) 1,79,000 16,000 1,95,000 10 Commission expenses (83000-12000) 71,000 12,000 mission Payable Com Cash To record cash payment for commission) 83,000 11 Cash 18,500 Unearned Reven 18,500 ue To record receipt of cash for service yet to be provided) 12Utilities expenses 2,500 Utilities Payable To record receipt of bill towards utilities) 2,500 1,125 1,125 13 Advertisement expenses Prepaid expenses Cash To record payment of advertisement expenses) 2,250 14 Cash 900 Interest Receivable Interest Income (900-450) To record interest inome receipt) 450 450 15 Rent expenses Cash To record payment of rent) 12,000 12,000 16 Income tax expenses Cash To record payment of income tax) 28,706 28,706Ledgers Cash (in $) (in S) Balance Debit Credit Debit 45,000 Date Item Credit Balance b/d Equipment Accounts Receivable Common Stock Unearned Revenue Interest Receivable Interest Income Accounts Payable Salaries and Wages Expenses Salaries and Wages Payable CommIssion expenses Commission Payable Advertising expenses Prepaid expenses Rent Income tax expense 19,000 3,46,000 1,25,000 18,500 450 450 51,500 1,79,000 16,000 71,000 12,000 1,125 1,125 12,000 28,706 64,000 410,000 5,35,000 5,53,500 5,53,950 5,54,400 5,02,900 3,23,900 3,07,900 2,36,900 2,24,900 2,23,775 2,22,650 2,10,650 1,81,944 Balance c/d 1,81,944 Accounts Receivable (in $) (in $) Balance Date Item Debit Credit Debit 90,000 4,65,000 1,19,000 1,19,000 Credit Balance b/d Service Income Cash Balance c/d 3,75,000 3,46,000Bank Loan (in $) (in $) Balance Date Item Debit Credit Debit Balance b/d Balance c/d Credit 1,54,000 1,54,000 Supplies (in $) (in $) Balance Date Item Credit Debit 25,000 11,000 11,000 Debit Credit Balance b/d Supplies expense Balance c/d 14,000 Interest Receivable (in $) (in $) Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 450 450 Notes Payable (in Ś) (in $) Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 50,000 50,000 50,000 Accounts Payable (in $) (in $) Balance Date Item Debit Credit Debit Balance b/d Cash Balance c/d Credit 65,000 13,500 13,500 51,500Commission Pavable (in S) (in S) Balance Date Item Debit Credit Credit 12,000 Debit Balance b/d Cash Balance c/d 12,000 Salaries and Wages Payable (in $) (in $) Balance Date Item Debit Credit Credit 16,000 Debit Balance b/d Cash Balance c/d 16,000 Utilities Payable (in $) (in $) Balance Date Item Debit Credit Debit Credit Balance b/d Utilities expenses Balance c/d 2,500 2,500 2,500 Interest Payable (in $) (in $) Balance Date Item Debit Credit Debit Balance b/d Balance c/d Credit 1,200 1,200 Unearned Revenue (in $) (in $) Balance Date Item Debit Credit Debit Balance b/d Cash Service Income Balance c/d Credit 32,000 50,500 27,500 27,500 18,500 23,000Common Stock (in $) (in S) Balance Debit Credit Debit Credit 3,25,000 4,50,000 4,50,000 Date Item Balance b/d Cash Balance c/d 1,25,000 Equipment (in $) (in $) Balance Debit Credit Debit 3,18,750 2,99,750 2,95,750 2,95,750 Date Item Credit Balance b/d Cash Loss on sale of Equipement Balance c/d 19,000 4,000 Loss on sale of Equipment (in $) (in $) Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 4,000 4,000 4,000 (in $) (in $) Investments Balance Debit 33,000 33,000 Date Item Debit Credit Credit Balance b/d Balance c/d Prepaid expenses (in $) (in $) Balance Date Item Debit Credit Debit 28,000 29,125 29,125 Credit Balance b/d Cash Balance c/d 1,125Vehicle (in $) (in $) Balance Date tem Debit Credit Debit Credit Balance b/d Notes Payable Balance c/d 50,000 50,000 50,000 Retained Earnin (in $) (in $) Balance Date Item Debit Credit Debit Balance b/d Balance c/d Credit 71,700 71,700 (in $) (in $) Service Income Balance Date Item Debit Credit Debit Credit Balance b/d Accounts Receivable Unearned Revenue Balance c/d 3,75,000 23,000 3,75,000 3,98,000 3,98,000 (in $) (in S) Supplies expenses Balance Date Item Debit Credit Debit Credit Balance b/d Supplies Balance c/d 14,000 14,000 14,000 Utilities expenses (in $) (in $) Balance Date Item Debit Credit Debit Credit Balance b/d Utilities Payable Balance c/d 2,500 2,500 2,500(in $) Debit 1,125 Advertising expenses (in $) Balance Date Item Debit Credit Credit Balance b/d Cash Balance c/d 1,125 1,125 Rent expenses (in $) in Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 12,000 12,000 12,000 (in $) Debit 1,79,000 Salaries and Wages expenses (in $) Balance Date Item Debit Credit Credit Balance b/d Cash Balance c/d 1,79,000 1,79,000 (in $) (in $) Commission expenseS Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 71,000 71,000 71,000 (in $) ncome Tax expenses in Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 28,706 28,706 28,706(in $) (in $) Interest Income Balance Date Item Debit Credit Debit Credit Balance b/d Cash Balance c/d 450 450 450 Income Statement (Single-Step) for the month ending Jan 2019 Particulars Service Income Interest Income 3,98,000 450 Total Revenue 3,98,450 (-) Expenses Supplies expenses Utilities expenses Advertising expenses Rent expenses Salaries and Wages expenses Commission expenses Loss on sale of Equipment Income tax expenses 14,000 2,500 1,125 12,000 1,79,000 71,000 4,000 28,706 Total Expenses 3,12,331 Net Income 86,119

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