Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How would I record as these as T-Accounts? Packing Inc.'s transactions during January 2019: 1. Jan. 1 - Issued 7,500 shares of no-par common stock

How would I record as these as T-Accounts?image text in transcribed

Packing Inc.'s transactions during January 2019: 1. Jan. 1 - Issued 7,500 shares of no-par common stock for $10 per share. 2. Jan. 1 - Purchased a machine for $48,000. Monthly depreciation for the machine is $800. 3. Jan. 6 - Purchased office supplies on account for $6,000. 4. Jan. 10 - Performed repairs and maintenance on their computer equipment costing $3,500. 5. Jan. 12 - Purchased inventory for $50,000. 6. Jan. 15 - Declared and paid $1,500 in dividends to its shareholders. 7. Jan. 20 - Paid $6,000 for the supplies purchased on January 6. 8. Jan. 25 - Provided services for which a customer had paid $5,000 in December of 2018 (hint: see the deferred revenue account in the January 1, 2019 trial balance). 9. Jan. 31 - Paid its employees $25,000 for work performed from December 26 - January 25. $3,800 was for work performed in December 2018, and 21,200 was for work performed from January 1 - January 25, 2019. 10. Collected $145,000 in accounts receivable. 11. Made credit sales for $180,000. The cost of the goods sold was $90,000. 12. Paid $35,000 to its suppliers for inventory purchased on credit in December 2018 Other information: 1. At the end of January, Packing Inc. had $2,000 of office supplies on hand. 2. Monthly depreciation for the Furniture & Fixtures is $500, and monthly depreciation for the computer equipment is $350. 3. The note payable for $10,000 is a 5-year note that matures on December 31, 2022. The interest on the note is 6% and is payable annually on each December 31st. Packing Inc. made their regularly scheduled interest payment of $600 on December 31, 2018. 4. During the period January 26 - January 31 employees earned an additional $4,000 which will be included in their February paycheck

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

AML Auditing Understanding Investment Banking

Authors: Bob Walsh

1st Edition

153959307X, 978-1539593072

More Books

Students also viewed these Accounting questions

Question

=+21.18. Use (21.28) to find the generating function of (20.39).

Answered: 1 week ago