Question
Transactions during 2023 follow. All dollars are in millions, except per share amounts: 1. Borrowed $15 cash on a 5-year, 8 percent note payable, dated
Transactions during 2023 follow. All dollars are in millions, except per share amounts: 1. Borrowed $15 cash on a 5-year, 8 percent note payable, dated March 1, 2023. 2. Sold 4 million additional shares of common stock for cash at $1 market value per share on January 1, 2023. 3. Purchased land for a future building site; paid cash, $13. 4. Earned $215 in revenues for 2023, including $53 on credit and the rest in cash. 5. Incurred $89 in wages expense and $25 in miscellaneous expenses for 2023, with $20 on credit and the rest paid in cash. 6. Collected accounts receivable, $34. 7. Purchased other noncurrent assets, $15 cash. 8. Purchased supplies on account for future use, $27. 9. Paid accounts payable, $26. 10. Declared cash dividends on December 1, $25. 11. Signed a three-year $33 service contract to start February 1, 2024. 12. Paid the dividends in (j) on December 31. Data for adjusting entries (amounts in millions): 13. Supplies counted on December 31, 2023, $18. 14. Depreciation for the year on the equipment, $10. 15. Interest accrued on notes payable (to be computed). 16. Wages earned by employees since the December 24 payroll but not yet paid, $16. 17. Income tax expense, $11, payable in 2024.
Required: 1) Set up T-accounts for the accounts on the trial balance and enter beginning balances 2) Prepare journal entries for transactions (a) through (l) and post them to the T-accounts 3) Journalize and post the adjusting entries (m) through (q)
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