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