Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JANUARY TRANSACTIONS Jan 2: Issued 100,000 shares of common stock for $100,000 cash. Jan 3: Purchased a warehouse and land for $80,000 cash. The land
JANUARY TRANSACTIONS Jan 2: Issued 100,000 shares of common stock for $100,000 cash. Jan 3: Purchased a warehouse and land for $80,000 cash. The land is valued at $20,000 and the warehouse is valued at $60,000. Borrowed $50,000 cash on a 3-year promissory note to Third State Bank. Jan 6: Purchased five new delivery trucks for a total of $45,000 cash. Jan 31: Performed delivery services in January totaling $15,900. $8,410 was received in cash. The other $7,490 was on account. Jan 31: Purchased $3,230 in fuel and lubricant on account during January. Jan 4: PART 5 Prepare an UNADJUSTED TRIAL BALANCE (ATB) for January 31. PART 6 Use the information below to prepare the January 31 ADJUSTING JOURNAL ENTRIES (AJES). AJE 1 January DEPRECIATION EXPENSE is $750 for the DILIVERY TRUCKS and $167 for the WAREHOUSE BUILDING AJE 2 Accrued INTEREST EXPENSE for January was $417. Accrued interest payments are due every January 1 and July 1, until the principle is repaid. AJE 3 INCOME TAX EXPENSE is 30% of the PRE-TAX INCOME amount. JANUARY TRANSACTIONS Jan 2: Issued 100,000 shares of common stock for $100,000 cash. Jan 3: Purchased a warehouse and land for $80,000 cash. The land is valued at $20,000 and the warehouse is valued at $60,000. Borrowed $50,000 cash on a 3-year promissory note to Third State Bank. Jan 6: Purchased five new delivery trucks for a total of $45,000 cash. Jan 31: Performed delivery services in January totaling $15,900. $8,410 was received in cash. The other $7,490 was on account. Jan 31: Purchased $3,230 in fuel and lubricant on account during January. Jan 4: PART 5 Prepare an UNADJUSTED TRIAL BALANCE (ATB) for January 31. PART 6 Use the information below to prepare the January 31 ADJUSTING JOURNAL ENTRIES (AJES). AJE 1 January DEPRECIATION EXPENSE is $750 for the DILIVERY TRUCKS and $167 for the WAREHOUSE BUILDING AJE 2 Accrued INTEREST EXPENSE for January was $417. Accrued interest payments are due every January 1 and July 1, until the principle is repaid. AJE 3 INCOME TAX EXPENSE is 30% of the PRE-TAX INCOME amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started