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Brian Toole Company Inc._ACCOUNT BALANCES

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Question;PROBLEM 1 - JOURNAL ENTRIES AND ACCOUNT BALANCES;On;January 1, 2006, the Brian Toole Company Inc. had the following account;balances in its accounting system. (all the below balances are normal;balances);Account;Debit;Credit;Cash;300;Accounts;recivable;1,200;Inventory;Tools;13,000;Machinery;22,000;Accumulated;Depreciation;-5,500;Land;8,000;Accounts;Payable;2,000;Taxes Payable;1,500;Long term Note;Payable;12,000;Common Stock;10,000;Retained;Earnings;13,500;39,000;39,000;The;following transactions occurred during the month of January 2006.;a. The;entire beginning inventory of tools was sold to customers for $22,000 cash;b. All;outstanding taxes were paid in full.;c. $600 was;collected from customers accounts receivables.;d. $1,000;was paid on the accounts payable.;e. New;inventory was acquired on account for $8,500.;f. Wages;were incurred for employees totaling $3,000 and $2,500 of this was paid in;cash.;g.;Depreciation expense of $2,000 was recorded on the machinery.;h. The note;Payable incurrs interest at 12% and the interest was not paid in cash;i. Dividends;of $1,000 were paid to stockholders;REQUIRED;A. Provide;Account Balances as indicated.;1. Total Assets;2. Total Liabilities;3. Total Stockholders equity;4. Total Net Income;5. Total Ending Retained earning

 

Paper#37261 | Written in 18-Jul-2015

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