Recording and Reporting Transactions Brown Company reported the following account balances at January |: The following transactions
Question:
Recording and Reporting Transactions Brown Company reported the following account balances at January |:
The following transactions or adjustments to account balances were recorded during January:
1. Professional services were provided and billed to clients in the amount of $220,000.
. Wages payable at January | were paid.
3. Additional wages of $110,000 were earned by employees.
4. Cash of $205,000 was collected on account.
5. Equipment costing $40,000 was purchased for cash.
6. A total of $96,000 of wages earned in January was paid.
7. Payment of $13,000 was made on accounts payable.
8. Insurance in the amount of $300 expired in January.
9. Depreciation in the amount of $6,000 was recorded.
. Record the journal entry for each of the transactions and adjustments.
. Create the appropriate general ledger T-accounts and post the beginning balances and journal entries to the T-ac- counts.
. Prepare an adjusted trial balance at January 31.
. Prepare an income statement and statement of changes in owners’ equity for the month of January and a balance sheet as of January 31.
Step by Step Answer:
Financial Accounting A Decision Making Approach
ISBN: 9780471328230
2nd Edition
Authors: Thomas E. King, Valdean C. Lembke, John H. Smith