Chart of Accounts for FAS Engineering Company

Assets:

101	Cash
105	Accounts Receivable
110	Note Receivable
115	Inventory
120	Prepaid Insurance
125	Warehouse Building
130	Equipment
Liabilities:
201	Account Payable
205	Note Payable
210	Wages Payable
215	Loan Payable
220	Interest Payable

Owners Equity:

301 Capital Stock

310 Dividends

Revenues:

401 Sales Revenue

405 Interest Revenue

Expenses:

501	Cost of Goods Sold
505	Wages Expense
510	Utilities Expense
515	Insurance Expense
520	Income Tax Expense
530	Depreciation Expense = (Historical cost Salvage Value)/(Useful Life)

Assume the following: FAS Engineering Company had the following transactions:

Jan-01 Issued capital stock for $965,000.

Jan-01 Purchased a Packaging Equipment for $20,000.

Jan-01 Purchased an Insurance Policy (1 year) for $30,000.

Jan-03 Purchased a Machine, paying $15,000 in cash and issuing a note of

$20,000.

Jan-05 Purchased $28,000 of inventory on account.

Jan-07 Sold inventory costing $6,000 for $50,000 on account.

Jan-11 Paid $2,000 for inventory purchased on account (from Jan-05).

Jan-15 Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17 Paid utility bills totaling $1,500.

Jan-23 Paid wages for $13,000.

Jan-25 Collect $8,000 in bank interest. Jan-30 Paid $12,590 due to income taxes.

Required:

1. Record the above transactions in General Journal (Journal Entries).
2. Record the transactions in General Ledger format (T-Accounts).
3. Prepare a Trial Balance for FAS Engineering Company.