Question
John's House Painting Company started a business on December 1, 2023. He had has the following transactions for December 2023. 1. December 1 - Issued
John's House Painting Company started a business on December 1, 2023. He had has the following transactions for December 2023. 1. December 1 - Issued common stock for $100,000 to start a house painting business. 2. December 1 - Paid gas expense $200. 3. December 1 - Paid for 2 month's rent $800. 4. December 1 - Purchased equipment costing $4,800 on credit. 5. December 12 - Purchased supplies costing $800 on credit. 6. December 18 - Painted three houses totaling $12,000 and billed customers. 7. December 28 - Received $2,000 for houses painted in #6. 8. December 31 - Received $1,200 for a job to paint a house in January next year. 9. December 31 - Paid a dividend of $1,000.
Required: 1. Create journal entries for the above transactions.
2. Post the above transactions to T Accounts and summarize.
3. Create an unadjusted trial balance as of December 31, 2023.
4. Create and record the following adjusting entries: Equipment has a life of 4 years. Record 1 month depreciation. The supplies on hand are $600. Adjust for December's rent
5. Create an adjusted trial balance as of December 31, 2023.
6. Create an Income Statement, Statement of Retained Earnings and a Balance Sheet.
7. Create and record the closing entries.
8. Create a post-closing trial balance as of December 31, 2023
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