Question

The following events apply to Pearson Service Co. for 2018, its first year of operation:

1. Received cash of $60,000 from the issue of common stock.

2. Performed $115,000 worth of services on account.

3. Paid $79,000 cash for salaries expense.

4. Purchased supplies for $17,000 on account.

5. Collected $93,000 of accounts receivable.

6. Paid $12,500 of the accounts payable.

7. Paid a $6,000 dividend to the stockholders.

8. Had $2,000 of supplies on hand at the end of the period.

Required

1. Record these events in general journal form.

2. Post the entries to T-accounts and determine the ending balance in each account.

3. Determine the amount of total assets at the end of 2018.

4. Determine the amount of net income for 2018.

**** I  will now upload parts A-D. Some are filled in but not showing as right. Please help me fill them in. *****

A:

Record these events in general journal form. (If no entry is required for a event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit 1 1 Cash 60,000 Common stock 60,000 2 2 Accounts receivable 115,000 Service revenue 115,000 3 3 Salaries expense 79,000 Cash 79,000 4 4 17,000 Supplies Accounts payable 17,000 5 5 Cash 93,000 Accounts receivable 93,000 6 6 Accounts payable 12,500 Cash 12,500 7 7 Dividends 6,000 Cash 6,000 8 8 15,000 Supplies expense Supplies 15,000

B:

C: & LASTLY D -

Answer 1

Notes Divided will not form part of p and l as it is paid out of net profits.

Net profit = 21000 Total assAss = 79500.

Please find workings below.

K L M N O P Q R S T V Account Payable Amount 12500 By supplies Amount 17000 Share holders equity Common stock Amount By cash 60000 Amount 60000 Assets Cash Account Amount To common stock 60000 By salaries Expenses To accounts recevial 93000 By account payable By dividends By closing bal Total 153000 Total To cash Amount 79000 12500 6000 55,500 153000 By closing bal By closing) 4500 Total 17000 Total 170001 Total 60000 Total 60000 Account Receviable Amount 115000 By cash By closing bal Amount Dividends Amount 6000 Amount 93000 22000 To sevice revenue To cash Supplies Expenses Amount Amount To openin 0 To purcha 17000 By exepense 15,000 By closing b 2,000 Total 17000 Total 17000 By bal 6000 Total 115000 Total 115000 Total 6000 Total 6000 Service revenue Amount Amount 115000 By Account receviable Amount 115000 To Account payable To pl Supplies Amount 17000 By expenses(bal) By closing stock 17000 Total Salaries Expenses Amount To cash (E 79000 15,000 2,000 17000 Amount Total Total 115000 Total 115000 Total 79000 Total 0

A B с C D E F G 1 2 Post Ref $ Credit Event General Jouranl 1 1.00 Cash account To common stock $ Debit 60,000 3 4 60,000 5 6 2 115000 2 Account Receviable To service revenue 115000 7 8 9 3 3 79000 3 Salaries expenses account To cash 79000 4 17000 4 Supplies Account To Account payable 17000 5 93000 10 11 12 13 14 15 16 17 18 19 20 21 5 Cash account To Account Receviable 93000 6 12500 6 Account payable To cash 12500 7 6000 7 Dividened account To cash 22 6000

Y Z AA AB Income statement 115000 To salaries expenses To supplies expenses Sales revenue 79000 15000 To Net profit 21000 115000 115000 Liabilites Common stock Less Divideng Add Net profit Balance Sheet Amount Assets Amount 60000 Cash 55,500 -6000 21000 Accounts Receviable 22000 Supplies 2000 4500 Accounts Payable 79500 79500