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Please, help me with journal entries,adjusting entries, adjusting trial balance Loman Inc. has begun operations in 2014. They use the periodic method of accounting for
Please, help me with journal entries,adjusting entries, adjusting trial balance
Loman Inc. has begun operations in 2014. They use the periodic method of accounting for inventory. You are the new bookkeeper, and you'll record the following journal entries. January 1 Chris Loman, the owner of Loman Inc., invested $60,000. in the corporation to purchase 1000 shares of stock with a $1.00 par value. February 1 On February 1, the company received $2,016. for a fouryear technical service subscription, to be earned proportionally over the next 4 years, and credited a liability account. Inventory purchases of $12,000 were made on account to the Super Company, and an asset account was debited. The invoice was paid on February 15. April 1 On April 1, the company had cash sales of $18,400. On April 1, Loman purchased a 12month insurance policy for $1200. A check for $1,600. was sent to Richie CPA for professional services. On April 1, Loman purchased 50 shares of Sweetheart Co. stock as an investment in marketable securities, and paid $2200. The company purchased office supplies of $188.00 from OfficeMax and debited the Office Supplies Inventory account. On April 1, the company bought land for $8,500. May 1 On May 1, the company loaned $4,400. to another company on a 9%, oneyear note. On May 1, Loman borrowed $10,000. on an 8%, oneyear note. On May 1, the company sold 500 shares of its $1.00 par value stock for $16,200. On May 1, the company bought $280. of office supplies from Staples. An invoice for maintenance and repairs of $467. was paid. Utilities expense of $572. was paid on May 1. August 1 On August 1, the company rented a piece of land from another company for $2,664. for a three year time period. Loman paid in full and charged an expense account on August 1. On August 1, the company sold land that had originally cost $8,500. for $10,000. cash. On August 1, Loman had cash sales of $16,400. December 1 On December 1, Loman paid $1000.00 for 2 months' rent in advance. In December a customer paid $2,000.00 in advance for merchandise that will be shipped in 2015. On December 1, the company received and deposited a check for $152.00 in dividend income from the Sweetheart Co. December 31 The inventory value at December 31, 2014 is $2,300. $720.00 of wages have accrued as of December 31. At the end of the year, there was $46.00 of office supplies on hand. The Sweetheart Co. stock has a value of $3,500.00 at 12/31. Required: Using a general journal format, prepare for the Loman Company: a. Journal entries b. Adjusting entries c. Adjusted trial balanceStep by Step Solution
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