Question

125% ... View Zoom Add Category T Text Insert Table Chart Shape Media Comment Collaborate + Sheet1 Step 1: Journalize business transactions: Account Debit Credit Debit Credit 1. Investors contribute $20,000 in exchange for common stock 2. Company purchases equipment in the amount of $5,000 Step 2: Prepare Trial Balance Account Cash Supplies Prepaid Insurance Buildings Equipment Accounts Payable Unearned Revenue Mortgage Payable Common Stock Service Revenue Wage expense Advertising expense 3. Company purchases building (on a mortgage) for $100,000 4. Company purchases supplies on account for $10,000 5. Company receives $3,000 in advance payment from customer TOTAL $0.00 $0.00 6. Company purchases a one year insurance policy for $600 7. Company receives $9,000 for services performed 8. Company pays employees $800 from work performed 9. Company pays $150 for one month of advertising
complete this six-step excel workbook

Answer 1

Credit Debit $20,000 $20,000 $5,000 $5,000 $1,00,000 $1,00,000 $10,000 $10,000 Journal Entries Date Particulars 1 Cash To Common Stock (Issued common stock in exchange of cash) 2 Equipment To Cash (Equipment purchased by cash) 3 Building To Mortgage Payable (Building purchased through Mortgage) 4 Supplies To Accounts Payable (Supplies purchased on credit) 5 Cash To Unearned Revenue (Advance received from Customer) 6 Prepaid insurance To Cash (Paid insurance for one year) 7 Cash To Service Revenue (Cash received for service performed) 8 Wage Expenses To Cash (Wages paid to Employees) 9 Advertising expense To Cash (Advertising Expense paid) $3,000 $3,000 $600 $600 $9,000 $9,000 $800 $800 $150 $150

Trial Balance as on Particulars Cash Supplies Prepaid Insurance Buildings Equipment Accounts Payable Unearned Revenue Mortgage Payable Common Stock Service Revenue Wage Expense Advertising Expense Debit Credit $25,450 $10,000 $600 $1,00,000 $5,000 $10,000 $3,000 $1,00,000 $20,000 $9,000 $800 $150 $1,42,000 $1,42,000

Credit Debit $4,000 $4,000 $8,000 $8,000 $1,500 $1,500 $600 $600 Adjusted Journal Entries Date Particulars 1 Depreciation To Accumulated Derepciation (Depreciation for the year) 2 Supplies expense To Supplies (Supplies expense for the year) 3 Unearned revenue To Service Revenue (Service performed from advance received) 4 Insurance To Prepaid insurance (Insurance for the year transferred) 5 Accounts Receivable To Service Revenue (Service performed on credit and accounted) 6 Interest expense To Interest Payable (Interest on mortgage for the year) 7 Wages To Wages Payable (Wages payable to employees) 8 Dividend To Cash (Cash dividend paid) $5,500 $5,500 $5,000 $5,000 $700 $700 $500 $500

Credit Debit $24,950 $5,500 $2,000 $0 $1,00,000 $5,000 Adjusted Trial Balance Particulars Cash Accounts Receivable Supplies Prepaid Insurance Buildings Equipment Accumulated Depreciation Accounts Payable Wages Payable Unearned Revenue Interest Payable Mortgage Payable Common Stock Service Revenue Wage Expense Depreciation Expense Supplies Expense Insurance Expense Interest Expense Dividend Advertising Expense $4,000 $10,000 $700 $1,500 $5,000 $1,00,000 $20,000 $16,000 $1,500 $4,000 $8,000 $600 $5,000 $500 $150 $1,57,200 $1,57,200

Amount $ 16,000 Income Statement For the Year Ended Particulars Service Revenue Less: Operating Expenses Wages Depreciation Supplies expense Insurance expense interest expense Advertisement expense Net operating loss Less; Dividend Net Loss $1,500 $4,000 $8,000 $600 $5,000 $150 ($3,250) $500 ($3,750)

Statement o Retained earnings Particulars Opening Balance Add Current year profit Less: Dividend paid Closing Balance Amount $0 ($3,250) $500 ($3,750)

Balance Sheet as on
Particulars		Amount	Particulars		Amount
Current Liablities			Current Asset
Accounts Payable		$10,000	Cash		$24,950
Wages Payable		$700	Accounts Receivable		$5,500
Unearned Revenue		$1,500	Supplies		$2,000
Interest Payable		$5,000	Prepaid Insurance		$0
Non Current Liabilities			Property & Equipment
Mortgage Payable		$1,00,000	Buildings	$1,00,000
Owner's Equity			Equipment	$5,000
Common Stock	$20,000			$1,05,000
Retained Earning	($3,750)	$16,250	Less: Accumulated Depreciation	$4,000	$1,01,000
		$1,33,450			$1,33,450

Closing Journal Entries Particulars Debit Accounts Payable Wages Payable Unearned Revenue Interest Payable Mortgage Payable Common Stock Accumulated Depreciation Retained Earning Cash Accounts Receivable Supplies Buildings Equipment Credit $10,000 $700 $1,500 $5,000 $1,00,000 $20,000 $4,000 $3,750 $24,950 $5,500 $2,000 $1,00,000 $5,000