The following transactions apply to Bialis Co. for 2012, its first year of operations. 1. Issued ($
Question:
The following transactions apply to Bialis Co. for 2012, its first year of operations.
1. Issued \(\$ 100,000\) of common stock for cash.
2. Provided \(\$ 86,000\) of services on account.
3. Collected \(\$ 75,000\) cash from accounts receivable.
4. Loaned \(\$ 10,000\) to Horne Co. on October 1, 2012. The note had a one-year term to maturity and an 8 percent interest rate.
5. Paid \(\$ 32,000\) of salaries expense for the year.
6. Paid a \(\$ 2,000\) dividend to the stockholders.
7. Recorded the accrued interest on December 31, 2012 (see item 4).
8. Determined that \(\$ 560\) of accounts receivable were uncollectible.
Required
a. Record the above transactions in general journal form.
b. Post the entries to T-accounts.
c. Prepare the income statement, balance sheet, and statement of cash flows for 2012.
d. Show the effects of the above transactions in a horizontal statements model like the one shown below.
Step by Step Answer:
a Transactions in General Journal Form Date Account Title Explanation Debit Credit 1 Stock Issuance Cash 100000 Common Stock 100000 2 Services on Account Accounts Receivable 86000 Service Revenue 8600...View the full answer
