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What are the journal entery for following and prepare Financial Statements and Trial balance On Jan 1st 2019, Ginvold Co. began operating a subsidiary in
What are the journal entery for following and prepare Financial Statements and Trial balance
- On Jan 1st 2019, Ginvold Co. began operating a subsidiary in on January 1, 2019 by acquiring all of the common stock for $50,000.They named the subsidiary Vingold, Inc.
- On Jan 1st, Vingold, Inc. immediately borrowed $120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2020
- On Jan 1st, Vingold, Inc. purchased a building for $170,000. (This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method.)
- On Jan 1st, Vingold, Inc. rented the building for three years to a group of local doctors for $6,000 per month.
- On Feb 1st, In February, Vingold, Inc. purchased $50,000 of Widgets for resale.The seller gave the company short term credit with terms of Net due in 90 days.
- On March1st, In March, Vingold, Inc. sold $40,000 of the Widgets at a total price of $60,000 on terms of net due in 31 days.
- On April 1st, In April, Vingold, Inc. received payment for the Widgets that they sold in March
- On May 1st, Vingold, Inc. paid the balance due from the February purchase of the widgets
- On October 1, Vingold, Inc. paid $5,000 for a building repair made on that date.
- By year-end, payments totaling $60,000 in rental payments had been received from the doctors.
- On Dec 31st, A cash dividend of $6,000 was transferred back to Ginvold on December 31, 2019.
- Other Adjustment entries?
Prepare an income statement, statement of Retained Ernings and a Balance sheet for Vingold Inc.
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