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On November 1,2018,King company was established and began operations.Kings adopted a fiscal year end of November 30. Below are the besiness transactions for the month
On November 1,2018,King company was established and began operations.Kings adopted a fiscal year end of November 30. Below are the besiness transactions for the month of November.
Journalizing, Adjustments, Trial Balances, Financial Statements & the Closing Process On November 1, 2018, King Company was established and began operations. Kings adopted a fiscal year end of November 30. Below are the business transactions for the month of November. Date Transactions Nov. 1 King Company received $50,000 cash from investors in exchange for 1000 shares of capital stock. Nov. 1 King Company paid in advance $6,000 for 12 months of rent. Nov. 1 King company paid $2,400 for its annual insurance premium. Coverage is from November 1, 2018 to October 31, 2019. supplies The business purchased office equipment for $15,000. 1000 The business purchased supplies costing $1,000 on account. equipment 1500 Nov. 2 Nov. 3 Nov. 5 Received $5,000 in advance for services to be provided in the future. on cried King rendered services to a client for $8,000, on account Nov. 7 Nov. 10 King received $3,000 for services provided services to a client. Nov. 15 Paid wages to employees, $3,000. Nov. 17 Paid creditor on account, $700. Nov. 20 Received $3,000 partial payment from customer on account for services on Nov. 7. Nov. 30 Received utility bill, $300. Nov. 30 Paid dividends, $2,500. Month end adjustments to be recorded on November 30, 2018 1. Supplies on hand on November 30, $750. 2. One month's prepaid rent expired, $500 3. Unused annual insurance premium balance, $2,200 4. Mailed invoice to customer for services provided, $1,500, 5. Wages for the period November 16th - 30th of $3,000 incurred but to be paid on December 3. 6. Unearned portion of the advance payment for services, $3,000. 7. Depreciation on office equipment, $250. Journalizing. Adjustments, Trial Balances, Financial Statements & the Closing Process Account DR CR Date Nov 1 15 17 20 30 30Step by Step Solution
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