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John?s House Painting Company has the following transactions for the year

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Question;John?s House Painting Company has the following transactions for the year1. December 1 ? Issued capital stock for $100,000 to start a house painting business.2. December 1 - Paid one year insurance premium costing $4,800.3. December 1 - Paid gas expense $200.4. December 1 - Purchased equipment costing $4,800 on credit.5. December 12 - Purchased supplies costing $800 on credit.6. December 18 - Painted three houses totaling $12,000 and billed customers.7. December 23 - Painted three rooms and billed customers $500.8. December 28 - Received $2,000 for houses painted in #6.9. December 31 - Paid for equipment purchased in #4.10. December 31 - Received $1,000 for a job to paint a house in January next year.11. December 31 - Paid a $1,000 dividend.Required:1. Prepare journal entries for the above transactions.2. Post the above transactions to T Accounts.3. Prepare a Trial Balance.4. Prepare adjusting entries in journal format and post to T Accounts.Supplies on Hand December 31 was $400.The Equipment is to be depreciated over 48 months starting with December.(HINT, Record one month depreciation expense).Wages owed but not paid on December 31 was $200.One month of insurance has expired.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 T Accounts.8. Prepare a Post-Closing Trial Balance.

 

Paper#43641 | Written in 18-Jul-2015

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