Joe’s Snow Plowing Company_Journal to Financial Statements

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Description

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.

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