Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

first month of operations (Jan. 2021) completed the following selected transactions; Jan. 1 The owner, invested $ 175.000- cash in the business. Jan. 2

 

first month of operations (Jan. 2021) completed the following selected transactions; Jan. 1 The owner, invested $ 175.000- cash in the business. Jan. 2 The owner borrowed $ 25.000- from the bank; signed a note payable. Jan. 5 The owner purchased $5.500 of food inventory on account and paid $ 3.800 cash for beverage inventory. Jan. 7 The owner paid rent expense of $ 5.000- on factory space in cash. Jan. 9 Collected $ 40,500- cash for the services performed for a customer. Jan.11 Sold $ 10.000 goods on account, Jan.12 Received cash of $ 5.500- from his clients. Jan.15 Received $7.000- invoice for advertisements aired in January. The entire amount is due on March 5. Jan.17 Paid $7.500- to employees for the month's salary expense, Jan. 19 Paid $ 3.000- cash on account. Jan. 21 purchased furniture for $14.500 and equipment for $13.000-; paid $12.500- cash and agreed to pay the balance within 60 days. Jan.23 Received $4.500- utility bill which will be paid on Feb.20. Jan.25 Purchased a delivery vehicle $12.500-, paid $ 5.000- in cash and issued a note for $7.500-. Jan.28 Pompei declared and paid 3.000- dividends in January. Requirements; a. Journalize each transaction to the General Journal. b. Post each transaction to the t-accounts. (Show each account's total debit, total credit and balance amount!) c. Prepare Trial Balance for Pompei Sales & Services Company for the end of January 2021. d. Prepare Income Statement, Statement of Retained Earnings and Statement of Financial Position for Pompei Sales & Services Company for the end of Jan. 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Step 1 ANSWER aJournalEntries Jan 1 Cash Asset 175000 Owners Equity Owners Investment 175000 Jan 2 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions