December 2- John invested $50,000, acquiring shares of the corporation's common stock. December 3- Paid Cash $1,000 in rent for the month of December. Dec. 4- Purchased $1,800 in Supplies on credit. Dec. 5- Received $3,000 in cash in advance for unearned services. Dec. 10- Purchased $15,000 worth of Equipment, paying $3,000 in Cash, and signed a Long Term Note Payable for $12,000, payable in three years. Dec. 12- Ironing services performed and billed customers $7,000, but not collected. Dec. 14 -Paid $400 in "Cash" to credit account for materials purchased on Dec. 4. Dec. 15 -Paid $1,800 in advance for Prepaid Insurance for one year. Dec. 17 - Incurred $600 for auto expenses, received invoice, but outstanding until next January. December 20 -Paid $1,900 in cash to employees for Salaries Expenses. December 21- The Board of Directors declared a cash dividend of $2,000 to the sole shareholder, John. December 22- Received $4,000 in cash from customers (Accounts Receivable) that had been billed on Dec 12. December 25-Received $10,000 in cash for ironing services during the month of December. December 27 -Paid $300 cash for miscellaneous expenses. Dec. 31- Paid cash dividend declared on Dec. 21 CHART OF ACCOUNTS ASSETS LIABILITIES STOCKHOLDERS' EQUITY REVENUES 41 Iron Services Earned CURRENT ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance CAPITAL STOCK 31 Common Stock 32 Retained Earnings 33 Cash Dividends, CURRENT LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Iron Services 24 Cash Dividends Payable 25 LONG TERM LIABILITIES 28 Note Pavable 29 Mortgage Payable EXPENSES 51 Salaries Expense 52 Rent Expense 53 Auto Expense 54 Supplies Expense 55 Insurance Expense 56 Depreciation Exp. 57 58 59 Miscellaneous Exp. CLOSING ACCOUNT (Not a Capital Account) 35 Income Summary PROPERTY PLAN & EQUIPMENT 15 Land 16 Building 17 Accumulated Depr. 18 Equipment 19 Accumulated Depr. ASSETS Current Assets Property Plant & Equip. Cash 11 Land 15 Debit Credit Debit Credit LIABILITIES Current Liabilities Accounts Pavable 21 Debit Credit STOCKHOLDERS' EQUITY Stockholders' Equity Revenues Expenses Common Stock 31 Iron Services Earned 41 Salaries Expense 51 Debit Credit Debit Credit Debit Credit Retained Earnings 32 Debit Credit Building Debit 16 Credit Salaries Pavable Debit 22 Credit Rent Expense Debit 52 Credit Cash Dividends 33 Auto Expense 53 Credit Debit Accounts Receivable 12 Debit Credit Acc. Dep. Building 17 Debit Credit Unearned Iron Services23 Debit Credit Income Summary 35 Debit Credit Supplies Expense 54 Debit Credit Cash Dividend Payable24 Debit Credit Supplies Debit 13 Equipment Debit 18 Credit Credit Insurance Expense 55 Debit Credit Long Term Liabilites Note Payable 28 Debit Credit Depreciation Expense 56 Debit Credit Prepaid Insurance 14 Debit Credit Acc. Dep. Equip 19 Debit Credit Mortgage Payable 29 Debit Credit Miscellaneous Exp. 59 Debit Credit