bill and dan opened up HEB Inc. on September 1, 2013. During the first month of operations
Question:
bill and dan opened up HEB Inc. on September 1, 2013. During the first month of operations the following transactions occurred.
Date Transaction
9-1-13 Common Stockholders invested $40,000 cash in this new business.
9-2 Paid $4,000 rent for its store for the month of September and prepaid October – December’s
rent (e.g., 3 mo.). All rent is due on the 2nd of the month.
9-3 Borrowed $10,000 from a bank via a 6-month (180 day) promissory note at a 12% annual
rate. (use a 360 day year for all calculations)
9-4 Purchased $25,000 of cleaning equipment.
9-5 Paid $1,200 for 1-year insurance policy.
9-10 Received a bill from NEWSCORP for advertising the opening of their store, for $400.
9-15 Performed services on account for $6,200.
9-20 Received $2,200 for services originally performed on account.
9-30 Declared a cash dividend of $700 to shareholders of record on 10/1/13. The dividend is
payable on 12/31/13.
Assignment:
Do:
1. Journalize all of the September transactions in the appropriate columns as indicated below in the GENERAL JOURNAL.
2. Open GENERAL LEDGER accounts (T-ACCOUNTS) and post all of the September transactions.
3. Prepare a TRIAL BALANCE as of September 30, 2013. (This is a pre-closing Trial Balance)
4. Prepare a TRIAL BALANCE as of December 31st, 2013 (Please do NOT make closing entries)
Please make all appropriate adjusting entries and assume no adjustments have been made prior to
December 31st.
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin