1. Ön January 1, 2019, issues 20,000 shares of common stock for cash. 2. On January 5, 2019, purchases equipment on account for 4,500, payment due within the month. 3. On January 8, 2019, receives 4,000 cash in advance from a customer for services not yet rendered. 4. On January 9, 2019, pays 1,200 insurance for one year in cash. 5. On January 10, 2019, provides 8,500 in services to a customer who asks to be billed for the services. 6. On January 11, 2019, purchases supplies on account for 300, payment due within three months. 7. On January 17, 2019, receives 2,800 cash from a customer for services rendered. On January 19, 2019, paid in full, with cash, for the equipment purchase on January 5. On January 20, 2019, paid 5,600 cash in salaries expense to employees. On January 30, 2019, divident payment of 1,300 made. 8. 9. 10. Instructions 1. Prepare journal entries to record each of the January transactions. (Omit explanations.) 2. Post the journal entries to the accounts in the ledger. 3. Prepare an unadjusted trial balance as of January 31, 2019.

1. Ön January 1, 2019, issues 20,000 shares of common stock for cash. 2. On January 5, 2019, purchases equipment on account for 4,500, payment due within the month. 3. On January 8, 2019, receives 4,000 cash in advance from a customer for services not yet rendered. 4. On January 9, 2019, pays 1,200 insurance for one year in cash. 5. On January 10, 2019, provides 8,500 in services to a customer who asks to be billed for the services. 6. On January 11, 2019, purchases supplies on account for 300, payment due within three months. 7. On January 17, 2019, receives 2,800 cash from a customer for services rendered. On January 19, 2019, paid in full, with cash, for the equipment purchase on January 5. On January 20, 2019, paid 5,600 cash in salaries expense to employees. On January 30, 2019, divident payment of 1,300 made. 8. 9. 10. Instructions 1. Prepare journal entries to record each of the January transactions. (Omit explanations.) 2. Post the journal entries to the accounts in the ledger. 3. Prepare an unadjusted trial balance as of January 31, 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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