Hialeah Skateboard Corporation

Trial Balance

YTD December $31,2021$

Cash $680,000-$

Accounts recievable $284,500-$

Equipment $40,000$

Inventory $300,000-$

Accumulated Depreciation Equipment $30,000$

Accounts Payable $-100,000$

Common Stock $-1,000,000$

Merchandise Revenue $-1,045,000$

Sales Discounts $17,000$

Sales Allowances $18,500$

Cost of Goods Sold $250,000$

Wages Expense $325,000$

Depreciation Expense $10,000$

Rent Expense $60,000-$

Salaries Expense $120,000-$

Marketing Expense $40,000$

Supplies Expense $10,000-$

Utilities Expense $20,000-$

$2,175,0002,175,000$

$1)$ Journalize the following transactions using T accounts that occurred during January $2022-$ Make sure to show your work $(50$ Points$)$

$1/1/22-$ Bought merchandise from Jimbo Co$.,$ $$12,400,$ FOB destination, $2/10,$ n$/30.$ Invoice dated $1/1/22$

$1/1/22-$ Bought an automated pallet moving system for the warehouse at a cost of $$160,000,$ with a useful life of $5$ years and residual value of $$22,000,$ depreciated using the double declining method

$1/3/22-$ Paid Shipping charges of $$415$ relating to the $12/1/20$ purchase

$1/10/22$ Paid Jimbo Co$.$ for inv Dec $1$

$1/15/22-$ Sold merchandise to Fred Co$.$ for $$15,200$ under credit terms $2/10,$ N$/60,$ FOB Shipping point, Invoice dated January $15$th$.$ The merchandise cost of $$14,000$

$1/19/22-$ Paid $$125$ cash for shipping charges related to the January $15$th sale to Fred Co$.$

$1/20/22-$ Fred Co$.$ returned merchandis from the Jan $15$th sale having a cost of $$800$ and was sold for $$1,100.$ Merchandise was rtestored in inventory

$1/25/22-$ Received balance from Baird Company for the Jan $15$th sale

$1/30/22-$ The equipment which was on the books in our beginning trial balance was sold off for $$12,000($On the books at $$40,000$ for the asset, and $$30,000$ Accum Depreciation$)$

$2)$ Create an Income statement for the month ending in January $31,2022,$ and a Balance sheet as of January $31,2022(50$ Points$)$