The balance sheet for Bua Enterprises as of December 31, 2020 is shown below:
Bua Enterprises, Inc. Balance Sheet As of December 31, 2020 |
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Assets: |
Liabilities: |
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Cash |
$10,000 |
Accounts payable |
$1,000 |
|
Accounts receivable, net of $1,000 allowance |
3,000 |
Salaries payable |
2,000 |
|
Inventory |
7,000 |
Total current liabilities |
3,000 |
|
Total current assets |
20,000 |
Notes payable, 5%, due 2025 |
10,000 |
|
Equipment, net of $10,000 accumulated depreciation |
20,000 |
Total liabilities |
13,000 |
|
Total assets |
$40,000 |
Equity: |
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Common stock |
10,000 |
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Retained earnings |
17,000 |
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Total liabilities and equity |
$40,000 |
In January 2021, Bua had the following events/transactions take place:
January 1: Sold inventory costing $1,000 for $3,000 to customers on account.
January 2: Purchased $5,000 of inventory on account.
January 5: Paid $1,000 to suppliers of inventory for past purchases.
January 7: Paid salaries owed to employees as of December 31.
January 10: Signed an agreement with S. Young to serve as CFO beginning February 15, 2021.
January 15: Paid salaries to employees for the first two weeks of January, $2,000.
January 17: Sold inventory costing $2,000 for $5,000 to customers on account.
January 28: Paid the electricity, internet, trash, water, and sewer bills for the month of January, $500.
January 29: Collected $3,000 from customers for past sales transactions.
January 30: Paid $6,000 to the owner of Bua’s facilities for rent for January through June 2021.
Other information:
Required:
1. Journal Entries -
2. Adjusting Entries -
3. Adjusted Trial Balance -
4. Income Statement -
The balance sheet for Bua Enterprises as of December 31, 2020 is shown below: Bua Enterprises,...
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