Question

- John Binkerson began a computer software company, Binkerson Inc., January 1, 2020 with an investment of $71,000 for which he received Common Stock. The business completed the following transactions and during the month of January: a. The business bought a building for $60,000 b. Borrowed $90,000 from the bank, signed a note payable. c. Purchased office supplies on account for $1,300 d. Paid $88,000 for computer equipment e. Paid employees' salaries totaling $2,200 f. Performed software analysis on account for $1,200 g. Paid $800 of the supplies account payable h. Received a $600 bill for advertising expenses i. Performed services for cash of $1,100 j. Received $1,200 on account from customers k. Paid $1,100 for utilities 1. Declared and paid $500 in dividends Complete the following: (35 Points) 1. Set up T-Accounts as necessary to record the above entries, including the initial investment, and post the transactions listed (a-1) 2. Prepare the trial balance for Binkerson, Inc. at January 31, 2020

Answer 1

1. prepration of journal entries

Bim kerson Inc. Journal Entries Particulars Amount Credit Amount Dabit $ 7000 (a) Cash All $ Hood To Cosmon stock Ale (B Building se To cash all 60,000 60 000 D (C) Cash Dee 4. Note payable Ayu 99,000 90000 Boo (d) Supplies All To Account 1300 payable (e) Salary af 2200 2200 To Gash 1 B 1200 1200 (f) Account Receivables All So Services rendered Ac (9) Account payable All To Cash D 800 800 (6) Advertising expenxes Alo A 600 600 Yo Account payables 2 1100 (i) Cash All To Services rendered 1106

Amoud (con Particulars Amont or) (I) Cash Ale A $ 1200 To Account receivables All $ 12ob R 1100 (K) UHlities Alc To Cast All 1100 Soo (1) Dividend declared All Yo Carh Al sao Total. $231,000 $231,000


2. preparation of T accounts and Trial balance for binkerson incorporation

Preparation of T- Accounts / Ledgers (1) Cash Alo To common stock All $41000 By Building Alo $ 60,000 $ 2200 $90,000 By Salary Alo To Services rendered $ 1100 By Account payablesave $ 800 Yo Account receivables $1200 By Utilities All $ 110D $500 By Dividend declared $98700 Но Yo note payable By balance cold $163300 | $163300 $98700 Yo balance bld commont Stock Ali to balance cld $ 44000 $700 By Castalo $Hodo $7000 Rey Balance old $71000 Building 426 $60,000 By balouce cold Yo Cash all $ 60,oo $60,000 $60070 fobalance bld & beyooo


(4) Note payable All To balance eld $90,000 By Garh All $90,000 $90,000 $90000 By balance b/d ($90,000 (5) Supplies All 4o Account payables, $1300 By balance cld $1300 $13.00 $1300 To balance bld $1300 6) Account payables Alu To Cash Acc $800 By supplies Ac To balance old $1100 By Advisitigement expenses al $1300 $ 600 So Cashalo $1900 $1900 (7) Salary Arc By balancebla" "$ 1600 $2200 By balance eld $2200 $2200 $2200 $2200 Yo balance bld

(8) Account Recévelables Alc $1200 to Services rendered AC $ 1200 By cash ou $ 1200 $12.00 (9) Services Rendered All To balance ela $2300 Buy Atc Receivaboles $ 1200 $ 1100 By Cash All $2300 $2300 $2300 By balanceblo (10) Advisntising Expenses 16 Ho Account $600 Ry balance eld Payabies apo $600 $600 $600 $ 600 to balance bld (11 Hlities' $1100 By balanced To Cash Al с $1100 $1100 $1100 to balance b/d $1100


(12) Dividend declesed Al To cash All $500 By balanceeld $500 $500 $500 $500 Go balance bld Ceredit Balance. Cash Alo $71000 Binkerson Incorporation Tarial balance at January, 2020 Particulars Debat Balance $98700 Common stock All Building ALG $60,000 Note payables Apo Supplies Alo $ 1300 Accounts payables ABC Salary All $2200 Account Receivables a Services Rendered All Advistising Expenses All $600 Utilities All $ 1100 Dividend declared Alc $99,000 $1100 $500 Total balances $164,400 $164,400