HENDERSON COMPANY On April 1, Mary Henderson started Henderson Company. The company was organized as a corporation and has a monthly accounting period. The following transactions occurred during the company's first month Apr. 1 Mary Henderson invested $45,000 cash in the company in exchange for its common stock. Apr.1 The company paid $25,000 cash for equipment. Apr. 1 The company paid $1,400 cash to rent office space for April Apr. 1 The company paid $840 cash for the premium on a 12-month insurance policy. Coverage begins on April 1. Apr. 5 The company purchased $120 of supplies on account. Apr. 12 The company provided $1,575 in services to a customer. The customer must pay within 30 days. Apr. 14 The company paid $950 cash for employee salary Apr.25 The company provided services to a customer and immediately received 55,400 cash. Apr.28 The company paid $950 cash for employee salary Apr. 30 The company paid $475 cash in dividends. The company's chart of accounts follows: CHART OF ACCOUNTS ASSETS DIVIDENDS Cash Dividends Accounts Receivable Supplies REVENUES Prepaid Insurance Service Revenue Equipment Accumulated Depreciation Equipment EXPENSES Salaries Expense LIABILITIES Rent Expense Accounts Payable Supplies Expense Salaries Payable Insurance Expense Depreciation Expense-Equipment EQUITY Common Stock CLEARING Retained Earnings Income Summary Adjustment Information 1. Depreciation on the company's equipment for April is $400. 2. As of April 30, the company has $72 of supplies remaining, 3. As of April 30, the company has incurred $190 of unpaid and unrecorded salary. 4. As of April 30, one month of insurance coverage has expired. Service Revenue Cash Salaries Expense Accounts Receivable Supplies Rent Expense Prepaid Insurance Supplies Expense Equipment Insurance Expense Accumulated Depreciation Equipment Accounts Payable Depreciation Expense-Equipment Salaries Payable Common Stock Income Summary Retained Earnings Dividends Service Revenue Cash Salaries Expense Accounts Receivable Supplies Rent Expense Prepaid Insurance Supplies Expense Equipment Insurance Expense Accumulated Depreciation Equipment Accounts Payable Depreciation Expense-Equipment Salaries Payable Common Stock Income Summary Retained Earnings Dividends Credit HENDERSON COMPANY Unadjusted Trial Balance April 30 Debit Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense-Equipment Totals Credit HENDERSON COMPANY Adjusted Trial Balance April 30 Debit Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense-Equipment Totals HENDERSON COMPANY Income Statement For Month Ended April 30 Revenues Expenses Total expenses Net income HENDERSON COMPANY Statement of Retained Earnings For Month Ended April 30 Retained earnings, April 1 Net income Dividends Retained earnings, April 30 HENDERSON COMPANY Balance Sheet April 30 Assets Total assets Liabilities Total liabilities Equity Total equity Total liabilities and equity Credit HENDERSON COMPANY Post-Closing Trial Balance April 30 Debit Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Common Stock Retained Earnings Totals
