INSTRUCTIONS:

1.COMPLETE A GENERAL LEDGER FOR THE FOLLOWING TRANSACTIONS.

2. EXPLAIN YOUR ENTRIES AND HOW THEY AFFECTED THE BALANCE SHEET AND INCOME STATEMENT

A. Mr. Jones starts Widgets, INC. by issuing shares of capital stock for $7500.00 on January 1, 20xy. the business elects to use the ccural basis of accoutning.

B. Widgets, INC. purchases equipment costing $6000.00. A cash down payment of $2000.00 is made upon delivery of the equpiment, and a note for $4000.00 was signed for the remaining balance of the purhcase price. No interest accrues and payments od not start until January 1, 20xy

C. Widgets, INC. purchases merchandise for resale, all on account, for $30000.00 during the year.

D. Widgets, INC. sells merchandise costing $26000.00 for $42000.00. All sales are on account.

E. Widgets, INC. collects $33000.00 of cash on accounts (from customers) during the year.

F. Widgets, INC. disburses cash of $25000.00 to creditors ( on account ) during the year.

G. Widgets, INC. disburses cash of $9400.00 for miscellaneous operating expenses during the year.

H. Widgets, INC. recognizes depreciation expense for the year of $2600.00.

I. Widgets, INC. declares and pays $1200.00 of divideends during the year.