John’s House Painting Company _Journal to Financial statements

$22.00

Description

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

1. 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.

Reviews

There are no reviews yet.

Be the first to review “John’s House Painting Company _Journal to Financial statements”

Your email address will not be published. Required fields are marked *

John’s House Painting Company _Journal to Financial statements

$24.00

Description

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

1.
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.

Reviews

There are no reviews yet.

Be the first to review “John’s House Painting Company _Journal to Financial statements”

Your email address will not be published. Required fields are marked *