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1. Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for
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Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:
Jan. | 1 | Issued common stock in exchange for $115,000 cash. | ||
2 | Purchased inventory on account for $30,000 (the perpetual inventory system is used). | |||
4 | Paid an insurance company $1,800 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. | |||
10 | Sold merchandise on account for $11,500. The cost of the merchandise was $6,500. | |||
15 | Borrowed $25,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. | |||
20 | Paid employees $5,500 salaries for the first half of the month. | |||
22 | Sold merchandise for $9,500 cash. The cost of the merchandise was $5,500. | |||
24 | Paid $14,500 to suppliers for the merchandise purchased on January 2. | |||
26 | Collected $5,750 on account from customers. | |||
28 | Paid $1,000 to the local utility company for January gas and electricity. | |||
30 | Paid $3,500 rent for the building. $1,750 was for January rent, and $1,750 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts. |
Required: 1. Prepare general journal entries to record each transaction. 2. Post the transactions into the appropriate T-accounts. 3. Prepare an unadjusted trial balance as of January 30, 2021.
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