Georgia Supply Corporation, a merchandising firm, prepared the following trial balance as of October 1:

Georgia Supply engaged in the following transactions during October 2011. The company records inventory using the perpetual system.
Oct. 1 Sold merchandise on account to the Tracker Corporation for $12,000; terms 2/10, n/30, FOB shipping point. Tracker paid $350 freight on the
goods. The merchandise cost $6,850.
5 Purchased inventory costing $10,250 on account; terms n/30.
7 Received payment from Tracker for goods shipped October 1.
Oct. 15 The payroll paid for the first half of October was $22,000. (Ignore payroll taxes.)
18 Purchased a machine for $8,600 cash.
22 Declared a dividend of $0.45 per share on 45,000 shares of common stock outstanding.
27 Purchased building and land for $125,000 in cash and a $225,000 mortgage payable, due in 30 years. The land was appraised at $150,000 and the building at $300,000.
1. Prepare T-accounts for all items in the October 1 trial balance and enter the initial balances.
2. Record the October transactions directly to the T-accounts.
3. Prepare a new trial balance as of the end ofOctober.

Transcribed Image Text:

Debit Credit Cash $150,000 21,540 32,680 5.400 4,000 Accounts Receivable Inventory Land Building Accounts Payable Mortgage Payable. Common Stock Retained Earnings $ 9,190 23,700 40,000 60,730 $233,620 Totals $233.620