Holland America Line had the following transactions during the May:

1. Stockholders invested $80,000 cash in exchange for common stock.
2. Hired two employees to work in the production department and each of them will be paid a salary of $3,500 per month.
3. Signed a 2-year rental agreement for the company truck and paid $30,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $45,000. A cash payment of $7,000 was made immediately; the remainder will be paid in 6 months. 5. Paid $3,980 cash for a one-year insurance.
6. Purchased supplies for $3,500 on account.
7. Total revenues earned were $29,000—$12,000 cash and $17,000 on account.
8. Paid for supplies purchased in transaction 6.
9. Received $5,900 from customers in payment of accounts receivable.

10. Paid the monthly salaries of the two employees, totalling 7,000.

Required:

(a) Journalize the transactions.
(b) Post to the ledger accounts
(c) Prepare a trial balance on May 31,2020.

Answer rating: 100% (QA)

SOLUTION a Journalize the transactions Stockholders invested 80000 cash in exchange for common stock Cash 80000 Common Stock 80000 Hired two employees ... View the full answer