Use T-accounts to record the 14 transactions noted below for this new start-up company. Record all entries affecting the income statement into Equity since there are no separate T-accounts set up for the individual income statement accounts. A T-account form for you to use is provided as a separate attachment for you to print out and post these transactions.

Once all transactions have been posted, populate the net ending balance for each account for the accounts listed below. These are the answers you will post to this online assignment.

Transactions:

1. New company start up; Owners invest $100,000 to buy shares from company.
2. Company buys factory equipment for $20,000; Payment terms are net 30 days; Asset life = 5 years and will be depreciated in the future using straight line depreciation.
3. Company buys inventory for $100,000; Payment terms - 50% @ purchase; 50% net 30 days.
4. Company borrows $50,000 from bank due in 5 years.
5. Company generates sales of $25,000 with a product cost of $40,000; Payment terms are net 30 days.
6. Company records warranty expense of $5,000 to establish a warranty reserve for future claims.
7. Company pays supplier for factory equipment purchased last month.
8. Customer pays company for sales generated last month.
9. Company pays suppliers for inventory purchased last month.
10. Company generates sales of $15,000 with a product cost of $10,000; Payment terms are net 30 days.
11. Company records warranty expense of $2,000 to establish a warranty reserve for future claims.
12. Company records a bad debt receivables reserve of $2000 for potential uncollectible receivables.
13. Company records first month of depreciation expense for factory equipment purchased last month. Round to the nearest whole $ amount.
14. Company buys inventory for $15,000; Payment terms net 30 days.

Note: A T-account table is provided for you to use to answer this question in Blackboard. After working through the T-accounts, the net balances for each of the Balance Sheet accounts listed below must be populated/answered:

Cash -

Net Receivables -

Inventory -

Fixed Assets -

Total Assets -

Accounts Payable -

Other Accrued Liabilities -