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Please prepare a trial balance and if at all possible t-charts for the following data. 11) on January 31, todd has 80k supplies left 1.
Please prepare a trial balance and if at all possible t-charts for the following data.
11) on January 31, todd has 80k supplies left
1. Todd starts a water processing company called "Dam It, Todd". On January 1, 2018, he paid $250,000 for all 10,000 shares. 2. On January 1, 2018 Todd borrows money from the bank. He will pay 6% interest which will be due on in two years. He borrows $600,000. 3. On January 1, 2018 Todd agrees to rent land and building for the next 12 months. He will pay $150,000 per month. The first month's rent is due on January 31* (after he has used the land for the whole month. 4. On January 2, 2018, Todd pays $250,000 for supplies to be used in the water processing activities. These supplies will be used up as the work is performed. On January 3, 2018, Todd signs a contract for $480,000 for services to be provided in the month of January. He receives $120,000 in cash and will receive the rest on January 31". 6. On January 4, 2018, Todd buys equipment for $500,000. He pays $100,000 in cash and will pay the rest in equal monthly payment on the 28th of each month for the next 8 months. 7. On January 5, 2018, Todd hires 10 employees. They will each receive wages of $10,000 per month. They will be paid at the end of the month and will receive a full month's pay for January. 8. On January 10th, Todd decides to buy a fleet of trucks for the business. He enters into a contract that allows him to have the trucks today, and he will pay $24,000 today as well as $24,000 a month on the 31st of each month for the next 9 months. 9. On January 15th, Todd receives $200,000 for work to be performed in February. 10. On January 20th, Todd completes a job. He will be paid on January 311Step by Step Solution
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