Question
Chart of Accounts for Techno Engineering Supplies Company Assets: 101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance 125 Warehouse Building
Chart of Accounts for Techno Engineering Supplies 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
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Assume the following: Revolution Store had the following transactions:
Jan-01 Issued capital stock for $980,000.
Jan-01 Purchased a Packaging Equipment for $25,000 with a useful life of 10 years and a Salvage value of $1,500.
Jan-01 Purchased an Insurance Policy (1 year) for $35,000.
Jan-03 Purchased a Truck, paying $10,000 in cash and issuing a note of $20,000.
Jan-05 Purchased $20,000 of inventory on account.
Jan-07 Sold inventory costing $5,000 for $50,000 on account.
Jan-11 Paid $1,000 for inventory purchased on account (from Jan-05).
Jan-15 Collect $15,550 of accounts receivable from customers (from Jan-07).
Jan-17 Paid utility bills totaling $500.
Jan-23 Paid wages for $9,000.
Jan-25 Collect $300 in bank interest.
Jan-30 Paid $2,500 due to income taxes.
Jan-31 Adjust the Insurance account and depreciation expense at the end of the month.
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***Required:
-Record the above transactions in General Journal (Journal Entries).
-Record the transactions in General Ledger format (T-Accounts).
-Prepare a Trial Balance for Techno Engineering Company.
-Prepare Income Statement.
-Prepare Retained Earnings Statement.
-Prepare Balance Sheet.
-Prepare a Cash Flow Statement
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