A and C
On October 1, Tyler Westcott created a new company, Westcott Company,tht sells dlething merchandise to s customers. The following transactions and adjustments occurred during the companys first month 1 Oct.1 Tyler invested $25,000 cash and computer equipment worth $35,000 in he comay exchange for common stock 1 The company rented furnished office space by paying $750 cash for the first monehs Oct. October) rent Oct.1 The company paid $1,200 cash for the premium on a 12-month inurance poicy Cov began on October 1 4Oct. 4 5 | Oct. 7 6 Oct. 8 7 Oct. 10 The company purchased $6,000 of merchandise inventory (6.00 units) on credit with te | The company borrowed ss,400 as a note payable. Terms of the note are 5% interest rate for 5 years. The first regular payment will be due November 15 The company paid cash wages of $1,000 to its only employee, Melissa, for the first week worked. She is a sales employee. The company purchased $3,200 of inventory (400 units) and paid with cash The company paid the balance due on account for the merchandise inventory purchased on October 4 Oct. 12 9/10 Oct. 15 The company sold 700 units of merchandise for $9,000 cash. The sales tax law requires 11 Oct. 31 The company recorded depreciation expense for the month. The computer equipment the 13 Oct. 31 The company recorded accrued interest expense on the note payable that was borrowed on Wescott Company to collect 6% sales tax on every dollar of merchandise sold. The company uses the LUFO method of valuing Cost of Goods Sold company owned has a salvage value of $1,500 and a useful life of 5 years Oct. 31 The company recorded the one month of insurance coverage that has expired October 4, as The company's chart of accounts follows: 101 Cash 106 Prepaid Insurance 124 Inventor 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip 200 Accounts Payable 205 Sales Tax Payable 212 Interest Payable 318 Retained Earnings 319 Dividends 405 Sales Revenue 600 Cost of Goods Sold 612 Depreciation 622 Salaries Expense 640 Rent Expense 650 Insurance Expense 800 Interest Expense quip, 260 Note Payable 307 Common Stock Complete the following for the above transactions and adjusting journal entries: A. Accounting equation spreadsheet (15 points) B. Journal entries (15 points C. General ledger (T-Account spreadsheet) (14 points) D. Adjusted Trial Balance (18 points) E. Income Statement (10 points) Statement of Retained Earnings (4 points) Balance Sheet (13 points) F. G