Question
1. Toms Accounting Service entered into the following transactions during Year 1: 1) Issued stock to investors for $55,000 cash 2) Purchased land for $32,000
1. Toms Accounting Service entered into the following transactions during Year 1: 1) Issued stock to investors for $55,000 cash 2) Purchased land for $32,000 cash 3) Performed services on account for $51,000 4) Collected $33,600 from customers on account 5) Paid $19,500 cash for operating expenses
Required: a) Draw T-accounts and post the above transactions to the appropriate T-accounts.
2. Blance Company's adjusted account balances as of December 31, Year 2021 are listed below:
Accounts payable | 14,800 |
Accounts receivable | 32,500 |
Cash | 21,500 |
Common stock | 37,500 |
Insurance expense | 6,200 |
Land | 30,000 |
Maintenance expense | 3,750 |
Prepaid rent | 3,050 |
Rent expense | 12,600 |
Retained earnings | 25,500 |
Salaries expense | 72,000 |
Service revenue | 103,500 |
Unearned revenue | 4,500 |
Utilities expense | 4,200 |
Required: a) Prepare an adjusted trial balance. b) Prepare an income statement and balance sheet using those adjusted account balances.
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