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Joe?s Snow Plowing Company_Journal to Financial Statements

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Question;Joe?s Snow Plowing Company has the following transactions for;the year;1.;December 1 ? Issued 10,000 shares of capital stock for $100,000 to start a snow;plowing business.;2.;December 1 - Paid a one year insurance premium costing $7,200.;3.;December 1 - Purchased a snow plow costing $42,000. Paid cash of $22,000 and;signed a 3 year, 6% note for the balance. Interest is to be paid annually. The;balance of the note will be paid at the end of its term. It is estimated that;the snow plow last 4 years and will have a $6,000 value after 4 years.;4.;December 3 ? Purchased $8,000 of supplies on credit. Picked up the supplies on;the same day.;5.;December 10 - Paid gas expense of $2,000.;6.;December 12 - Purchased supplies costing $1,800 on credit. Picked up the;supplies on the same day.;7.;December 18 ? Plowed 18 driveways totaling $32,000 and billed customers.;8.;December 23 ? Plowed 3 driveways and billed customers $1,500.;9.;December 28 - Received $22,000 from customers for driveways plowed in #7..;10.;December 28 ? Ordered supplies costing $8,000 to be delivered in January.;11.;December 31 - Paid for supplies purchased in #6.;12.;Paid employees $6,000 wages.;13.;December 31 - Received $5,000 for a snow plowing job to be done in January next;year.;14.;December 31 - Paid a $0.25 per share dividend.;Required;1.;Prepare journal entries for the above transactions.;2.;Post the above transactions to the ledger (use T Accounts).;3.;Prepare a Trial Balance.;4.;Prepare adjusting entries in journal format and post to the ledger (T;Accounts). Following additional information is provided;o;Supplies on Hand December 31 was $4,000.;o;Wages owed but not paid on December 31 was $2,000.;5.;Prepare an Adjusted Trial Balance.;6.;Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet.;7.;Prepare closing entries in journal format and post to the ledger (T Accounts).;8.;Prepare a Post-Closing Trial Balance.

 

Paper#37410 | Written in 18-Jul-2015

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