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Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred Jan. 1 Issued common stock in exchange for $113,000
Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred Jan. 1 Issued common stock in exchange for $113,000 cash. 2. Purchased Inventory on account for $32,000 (the perpetual inventory system is used). 4 Paid an insurance company $2,040 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 10 Sold merchandise on account for $11,700. The cost of the merchandise was 56,700. 15 Borrowed $27,000 from local bank and signed a note. Principal and interest at 10% is to be repaid in six months. 20 Paid employees $5,700 salaries for the first half of the month 22 Sold merchandise for $9,700 cash. The cost of the merchandise was $5,700. 24 Paid $14,700 to suppliers for the merchandise purchased on January 2. 26 Collected $5.850 on account from customers. 28 Paid $1,100 to the local utility company for January gas and electricity. 30 Paid 53,700 rent for the building. $1,850 was for January rent, and $1,850 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts Required: 1. Prepare general journal entries to record each transaction 2. Post the transactions into the appropriate T-accounts 3. Prepare an unadjusted trial balance as of January 30, 2021 HALOGEN LAMINATED PRODUCTS COMPANY Unadjusted Trial Balance January 30, 2021 Account Title Debits Credits Cash $ 128,950 Inventory 18,000 Prepaid insurance 1,800 Accounts receivable 5,750 Prepaid rent 1.750 Common stock $ 115,000 Accounts payable 15,500 Notes payable 25,000 Sales revenue 21,000 Cost of goods sold 12,000 5,500 1,000 1,750 Salaries expense Utilities expense Rent expense Totals $ 176,500 $ 176,500 Prey ch o Bic
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