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 $38,000 in cash. 2. January 5 Purchase land for $22, eee. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $8,6ee cash. 4. January 12 Hire three employees for $2,600 per month. 5. January 18 Receive cash of $12,600 in rental fees for the current month. 6. January 23 Purchase office supplies for $2,600 on account. 7. January 31 Pay employees $7,800 for the first month's salaries. 3. Prepare a trial balance. Credit GREEN WAVE COMPANY Trial Balance Accounts Debit Cash Supplies Land Equipment Accounts Payable Notes Payable Common Stock Service Revenue Salaries Expense L Totals

Answer 1

Before trial balance we should first pass journal entries & next step post journal entries to T a/c's & next step to prepare trial balance.

Journal entries -

Jan 1 -

cash a/c. 38000

To common stock a/c. 38,000

Jan 5-

Land a/c. 22,000.

To note payable. 22,000

Jan 9 -

Equipment a/c. 8,600

To cash. a/c. 8,600

Jan 12 -

3 employees hired at 2600 per month

Jan 18 -

Cash. a/c. 12,600  

To service revenue 12,600

Jan 23 -

Office supplies. a/c. 2,600

To account payables. 2,600

Jan 31

Salaries expenses a/c. 7800

To cash account. 7800

Net step to prepare T a/c's for journal entries

Cash account

Debit	amount	credit	amount
To common stock	38,000	by equipment	8600
To service revenue	12,600	by salaries	7800
		By closing balance	34,200
Total	50,600	total	50,600

Supplies a/c

Debit	amount	credit	amount
To accounts payable	2600
		By closing balance	2600
Total	2600	total	2600

Accounts payable a/c

Debit	amount	credit	amount
		By supplies	2600
To closing balance	2600
Total	2600	total	2600

Equipment

Debit	amount	credit	amount
To cash	8600
		By closing balance	8600
Total	8600	total	8600

Notes payable

Debit	amount	credit	amount
		By land	22,000
To closing balance	22,000
Total	22,000	total	22,000

Common stock a/c

Debit	amount	credit	amout
		By cash	38,000
By closing balance		38,000
Total	38,000	total	38,000

Service revenue

Debit	amount	credit	amount
		By cash	12,600
To closing balance	12,600
Total	12,600	total	12,600

Salaries expenses-

Debit	amount	credit	amount
To cash	7,800
		By closing balance	7,800
Total	7,800	total	7,800

Land a/c

Debit	amount	credit	amount
To notes payable	22,000
		By closing balance	22000
Total	22000	total	22000

After T- accounts preparing we prepare trial balance for the know the authenticity of the books of accounts.

Green wave company
Trial balance for Jan month
Particulars	Debit	credit
Cash	34,200
Supplies	2600
Land	22,000
Equipment	8600
Accounts payable		2600
Notes payable		22,000
Common stock		38,000
Service revenue		12,600
Salary expense	7800
Total	75200	75,200

.