Question

Prepare the Statement of Changes in Owners Equity for the Month.

1) Jan-1 The JW-Corp Received $120,000 from Investors in Exchange for 6,000 shares of Common Stock.

2) Jan-2 JW-Corp Borrowed $150,000 from SCHWAB BANK and signed a Note Due in 24 months.

3) Jan-3 JW Corp purchased Office Equipment worth $120,000 (5 year life), with a $40,000 Down payment of Cash and the remainder Due on account to Target-Corp within 9 Months.

4) Jan-4 JW Corp purchased an Office Building for $600,000 (25 year life), by making a Down payment of $60,000 and then signed a Note for the remainder Due in 18 Months to CHASE Bank .

5) Jan-5 JW Corp paid $15,000 with a check for Office Rent for the next 3 months .

6) Jan-10 JW Corp paid $4,000 with a check for Business Insurance for this month.

7) Jan-11 JW Corp provided CPA Services to the Gavilan Corp worth $175,000 and Collected $85,000 Cash and Billed them the remainder on Account.

8) Jan-15 JW-Corp received This Month’s Utility Bill from PGE for $3,000 to be paid Later.

9) Jan-16 JW-Corp received This Month’s Telephone Bill from Skype for $200 to be paid Later.

10) Jan-17 JW-Corp received a $10,000 check from Gavilan Corp on Account.

11) Jan-20 JW-Corp received a BILL for $15,000 for Legal Fees used this month to be Paid Later.

12) Jan-23 JW-Corp paid $11,000 with Checks for this Months Salaries expenses.

13) Jan-24 JW-Corp Received a $13,000 check from Gavilan Corp on Account.

14) Jan-25 JW-Corp received a $27,000 check from Garlic-Corp for Services to be Provided Later.

15) Jan-26 JW-Corp Paid Target $33,000 with a Check towards the Equipment from Transaction #3.

16) Jan-27 JW Corp Wrote a Check to Skype for the Full Amount Due on account for the Telephone Bill from #9.

17) Jan-28 JW Corp Paid $4.20 Cents per Share to the Owners of the Business with Checks.

18) Jan-29 JW-Corp paid $9,000 with a Check on the Note Payable from Transaction #2, $2,800 was for Interest Expense, and the remainder reduced the Note Payable

19) Jan-31 JW-Corp recorded one Month of RENT Expense from the Prepaid Account.

20) Jan-31 JW-Corp recorded one Month of Depreciation Expense on The Office Equipment Using the Straight Line Depreciation Method.

21) Jan-31 The JW Corp recorded one Month of Depreciation Expense on the Office Building using the Straight Line Depreciation Method. 22) Jan-31 the JW-Corp Recorded the Income Tax Payable for the Month, which is 34.00% of Net Income.(Ch#4)

Answer 1

Credit General Journal No. Date Account Titles and Explanation 1 1-Jan Cash Common stock (To record the issuance of 6,000 common stock) Debit 120,000 120,000 2 150,000 2-Jan Cash Notes payable (To record the issuance of note) 150,000 3 120,000 3-Jan Office equipment Cash Accounts payable (To record the purchase of equipment) 40,000 80,000 4 600,000 60,000 4-Jan Office bulding Cash Notes payable (To record the purchase of office building) 540,000 5 15,000 5-Jan Prepaid rent Cash (To record the payment of rent for 3 m 15,000 hs) 6 4,000 10-Jan Insurance expense Cash (To record the insurance paid) 4,000 7 85,000 90,000 11-Jan Cash Accounts receivable Service revenue (To record the cash and credit sales) 175,000 8 3,000 15-Jan Utilities expense Utilities payable (To record the utilities expense accrued) 3,000 9 200 16-Jan Telephone expense Telephone expense payable (To record the telephone expense accrued) 200 10 10,000 17-Nov Cash Accounts receivable (To record the cash received from customers) 1,000 11 15,000 20-Jan Legal expense Legal expense payable (To record the legal expense accrued) 15,000 12 11,000 23-Jan Salaries expense Cash (To record the cash paid for salaries expense) 11,000 13 13,000 24-Jan Cash Accounts receivable (To record the cash received from customers) 13,000 14 27,000 25-Jan Cash Unearned service revenue (To record the revenue received in advance) 27,000 15 33,000 26-Jan Accounts payable Cash (To record the payment made to creditors for equipment) 3,000 16 200 27-Jan Telephone expense payable Cash (To record the cash paid for telephone bill) 200 17 25,200 28-Jan Dividends (4.2*6000) Cash (To record the payment of cash dividend) Total 6000 shares 25,200 so multipied by 6000 18 6,200 2,800 29-Jan Notes payable Interest expense Cash (To record the repayment of note with interest) 9,000 19 5,000 31-Jan Rent expense (15000/3) Prepaid rent (To record the prepaid rent expired) 5,000 20 2,000 31-Jan Depreciation expense-office equipment (120000/5)*1/12 Accumulated depreciation-office equipment (To record the depreciation expense on office equipment) Cost/Useful life 2,000 1/12 for one month depr. 21 2,000 31-Jan Depreciation expense-office building (600000/25) *1/12 Accumulated depreciation office building (To record the depreciation expense on office building) Cost/Useful life 2,000 1/12 for one month depr. 22 45,500 31-Jan Income tax expense (130000*35%) Income tax payable (To record the income tax incurred) See income statement 45,500

175,000 Income Statement For the Month Ended January 31 Service revenue Less: Operating expense: Insurance expense Utilities expense Telephone expense Legal expense Salaries expense Depreciation expense-office building Depreciation expense-office equipment Rent expense Total operating expense Operating income (EBIT) Less: Interest expense EBT Less: Income tax expense (130000*35%) Net income 4,000 3,000 200 15,000 11,000 2,000 2,000 5,000 42,200 132,800 2,800 130,000 45,500 84,500 $ Beginning balance Add: Net income Less: Dividend Ending balance Statement of Owners' Equity For the Month Ended January 31 Common Stock Retained Earnings 120,000 84,500 25,200 $ 120,000 $ 59,300 $ Please give likes for the work. Thanks & Regards.