Question
Omega Construction started operations on January 1, Year 1. The following are the transactions for the first year: Transaction # Date Transaction Description Amount 1
Omega Construction started operations on January 1, Year 1. The following are the transactions for the first year:
Transaction # | Date | Transaction Description | Amount |
1 | Jan 1, Y1 | Issued common stock for cash | $90,000 |
2 | Jan 15, Y1 | Purchased construction equipment on account | $25,000 |
3 | Feb 1, Y1 | Paid cash for insurance | $5,000 |
4 | Mar 1, Y1 | Paid cash for labor | $35,000 |
5 | Apr 1, Y1 | Purchased raw materials for cash | $12,000 |
6 | Jun 1, Y1 | Completed construction project (cost: $60,000) | - |
7 | Jul 1, Y1 | Received cash payment for completed project | $85,000 |
8 | Dec 31, Y1 | Paid cash dividends to shareholders | $7,000 |
Required:
- Prepare the journal entries for each transaction.
- Prepare the income statement and balance sheet for the year ended December 31, Year 1.
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