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Accounting Business Transactions Problems




Question;Business Transactions1.1 Enter the following transactions into the accounting spreadsheet on the next page. The abbreviations are on the bottom of the sheet.1. On January 1, Billabong issues 10,000 shares for $100,000 cash.2. On January 1, Billabong pre-pays $24,000 in cash to rent a house at Pipeline in Hawaii for two years.3. On January 7, Billabong purchases merchandise inventory costing $15,000 from a supplier agreeing to pay later.4. On January 10, Billabong sells half of the inventory acquired in transaction 3) for $20,000 to a customer who will pay in two weeks.5. On January 11, Billabong receives $10,000 from a customer in advance for merchandise to be delivered at the end of January.6. Pay $1,000 on the account payable7. Pay dividends of $501.2Prepare accounting adjustments, and balance the books at the end of January.8. On January 31, Billabong delivers the merchandise promised in 5). Use the remaining inventory.9. Adjust the prepaid rent account on January 31 for use of the rental during January.10. $ 4,000 in salaries have been earned by employees, but not yet been paid as of January 31.11. The customers pay $20,000 in cash from the sale in transaction 4)


Paper#40460 | Written in 18-Jul-2015

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