The Candy Company, Inc., which provides consulting services to major utility companies, was formed on January 2 of this year. Transactions completed during the first year of operation were as follows: January 2 - Issued 600,000 shares of stock for $10,000,000. January 10 - Acquired equipment in exchange for $2,000,000 cash and a $6,000,000 note payable. The note is due in ten years. February 1 - Paid $24,000 for a business insurance policy covering the two-year period beginning on February 1. February 22 - Purchased $900,000 of supplies on account March 1 - Paid wages of $185,600 March 23 - Billed $2,730,000 for services rendered on account April 1 - Paid $100,000 of the amount due on the supplies purchased February 22. April 17 - Collected $210,000 of the accounts receivable May 1 - Paid wages of $200,400. May 8 - Received and paid bill for $98,200 for utilities. May 24 - Paid $42,500 for sales commissions. June 1 - Made the first payment on the note issued January 10. The payment consisted of $60,000 interest and $200,000 applied against the principal of the note. June 16 - Billed customers for $560,000 of services rendered. June 30 - Collected $300,000 on accounts receivable. July 10 - Purchased $155,000 of supplies on account. I August 25 - Paid $160,000 for administrative expenses. September 23 - Paid $30,000 for warehouse repairs. October 1 - Paid general wages of $90,000. November 20 - Purchased supplies for $60,000 cash. December 15 - Collected $125,600 in advance for services to be provided in December and January. December 30 - Declared and paid a $50,000 dividend to shareholders. trial Balance Worksheets Unduster balance Adjusting Journante Debit Adjusted trial balance 7,034,900 3,000,000 1.115.000 24.000 8.000.000 955,000 125.000 5,800,000 10,000,000 1 Cash Accounts receivable Supplies 7 Prepaid insurance # Equipment 9 Accumulated depreciation 10 Accounts payable 11 Unearned service revenue 12 Wares pavable 13 Interest payable 14 Notes payable 15 Comman stock 10 Retained earnings 17 Dividends 1 Service revenue 19 Wage pense 20 Utilities expense 21 Selling experie 22 Administrative experts 23 Repairs expense 24 Insurance expense 25 Interestepense 26 Supplies expense 27. Depreciation expense 20 29 30 50.000 5,290,000 476,000 98.200 42,500 160,000 30,000 60,000 18 B C D E G camdy company Statement of Retained Earnings for the Year ended 12/31/2019 alance January 1, 2019 S + candy company Balance Sheet as of 12/31/2019 Assets Current Assets Non-current assets: + Total Assets Liabilities and Equity Current Liabilities: 5 5 7 8 Non-current liabilities 0 Total Liabilities 1 2 Stockholders' Equity 3 4 56 87 Total Liabilities and Stockholders' Equity 88 39 40
