Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 2 AXAA Company Ltd. is formed as a corporation January 1, 2021, and has the following transactions for January 3 Required: 1. Prepared Journal

image text in transcribed
image text in transcribed
1 2 AXAA Company Ltd. is formed as a corporation January 1, 2021, and has the following transactions for January 3 Required: 1. Prepared Journal Entries for Transactions 1-14 5 Transaction 1 6 Transaction 1: Common shares are issued for $450,000 cash 7 Dr 8 CE 9 Transaction 2 10. Due to shortage of cash for the business operations, or Jan 1, 2021, the company borrowed $200,000 from RBC bank on an annual interest rate of Dr. 12 C 13 Transaction 3 14 On Jan 1, 2021, AXAA paid $2,500 cash for January rent to the landlord 15 Dr. T1 Transaction 4 19: On Jan 1, AXAA paid $3,600 for a 1-year insurance policy with the insurance coverage beginning on Jan 1, 2021 20 D 21 C SANNS 23 Transaction 5 24 On Jan 10, AXAA paid $125,000 to purchase equipment 25 Dr 26 ar 27 28 Transaction 6 29 On Jan 10, AXAA purchased a Land for $55,000 30 Dr 31 Cr. Cashf-A) 12 30 Transaction 7 34 On Jan. 12, the company purchased inventory for $45,000 on account H B D G 37 Transaction 8 30 On Jan 15, AXAA sold $65,000 of product to customers, 540,000 was received in cash, the balance was on account Cost of products sold was $35,000 Dr 30 Dr 41 Dr 43 ar 45 Transaction 9 46. On Jan 20, AXAA received an $25,000 payment from customers for sales made on account 47 Dr 19 50. Transaction 10 51 The company makes a payment to suppliers for $45,000 for inventory previously purchased on account on Jan. 12 Dr 53 or 56 55 Transaction 11 56 On Jan. 21. AXAA paid monthly utility costs of $2,500 57 Dr 38 Cr 59 Transaction 12 50 On Jan 25, AXAA paid the website hosting fee for the month in the amount of S2,800 Dr. 62 Cr C 64 Transaction 13 ES On Jan 31. AXAA paid $22.900 in wages to its employees for the month of January Or CH 50 63 Transaction 14 70 On Jan 31 AXAA declared and paid dividends in the amount of $2500 to its shareholders

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl s. warren, James m. reeve, Philip e. fess

21st Edition

978-0324400205, 324225016, 324188005, 324400209, 9780324225013, 978-0324188004

More Books

Students also viewed these Accounting questions