Unifying Concepts: Compound Journal Entries, Posting, Trial Balance Shaw Mercantile Company had the following transactions during 2009.

a. Jon Shaw began business by investing the following assets, receiving capital stock in exchange:

b. Sold merchandise that cost $32,000 for $52,000; $20,000 cash was received immediately, and the other $32,000 will be collected in 30 days.

c. Paid off the note of $6,000 plus $500 interest.

d. Purchased merchandise costing $14,000, paying $6,000 cash and issuing a note for $8,000.

e. Exchanged $6,000 cash and $6,000 in capital stock for office equipment costing $12,000.

f. Purchased a truck for $25,000 with $5,000 down and a one-year note for the balance.
Required:
1. Journalize the transactions. (Omit explanations.)
2. Post the journal entries using T-accounts for each account.
3. Prepare a trial balance at December 31, 2009.

Transcribed Image Text:

Cash Inventory Land Building Equipment Totals $ 30,000 34,000 20,000 165,000 13,500* $262,500 "A note of $6,000 on the equipment was assumed by the company.