Comprehensive problem: single cycle
The following transactions pertain to Abbott Corporation for 2011.
Jan.1 | Began operations when the business acquired $50,000 cash from the issue of common stock. | |
Mar.1 | Paid rent for office space for two years, $16,800 cash. | |
Apr.14 | Purchased $800 of supplies on account. | |
June 30 | Received $24,000 cash in advance for services to be provided over the next year. | |
July 5 | Paid $600 of the accounts payable from April 14. | |
Aug. | 1 | Billed a customer $9,600 for services provided during July. |
8 | Completed a job and received $3,200 cash for services rendered. | |
Sept. | 1 | Paid employee salaries of $36,000 cash. |
9 | Received $8,500 cash from accounts receivable. | |
Oct. 5 | Billed customers $34,000 for services rendered on account. | |
Nov.2 | Paid a $1,000 cash dividend to the stockholders. | |
Dec | 31 | Adjusted records to recognize the services provided on the contract of June 30. |
31 | Recorded $2,200 of accrued salaries as of December 31. | |
31 | Recorded the rent expense for the year. (See March 1.) | |
| 31 | Physically counted supplies; $100 was on hand at the end of the period. |
Required
a. Record the preceding transactions in the general journal.
b. Post the transactions to T-accounts and calculate the account balances.
c. Prepare a trial balance.
d. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows.
e. Prepare the closing entries at December 31.
f. Prepare a trial balance after the closing entries are posted.
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