Financial Statements Preparation

Super Pharma Company had the following transactions:

1. Issued capital stock for $935,000.

2. Purchased of inventory for $35,000 paying $15,000 and signing a note for the difference.

3. Paid $32,000 for electrical power bill.

4. Sold inventory costing $11,000 for a total sales price of $35,000.

5. Performed a service receiving $12,500 immediately and $2,500 to be collected.

6. Purchased a new Packaging Machine for $2,525 on account.

Chart of Accounts for American Aviation Company

Assets:

Cash

Accounts Receivable

Inventory

Equipment

Land

Liabilities:

Accounts Payable

Note Payable

Owners Equity:

Capital Stock

Dividends

Revenues:

Sales Revenue

Service Revenue

Expenses:

Cost of Goods Sold

Wages Expense

Utilities Expense

Rent Expense

Required:

A. Record the above transactions in Journal Entries.

B. Record the above transactions in T-Accounts. C. Prepare a Trial Balance for Super Vaccine Company.

D. Prepare the Income Statement, Statement of Retained Earnings, and Balance Sheet.