Tar Heels Unlimited began business on January 1, 2024. During January, the following transactions occurred: January 1 Issue common stock in exchange for $100,000 cash. January 2 Purchase inventory on account for $35,000. January 4 Pay an insurance company $2,400 for a one-year insurance policy. January 10 Sell inventory on account for $12,000. The cost of the inventory was $7,000. January 15 Borrow $30,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. January 20 Pay employees $6,000 salaries for the first half of the month.. January 22 Sell inventory for $10,000 cash. The cost of the inventory was $6,000. January 24 Pay $15,000 to suppliers for the inventory purchased on January 2. January 26 Collect $6,000 on account from customers. January 28 Pay $1,000 to the local utility company for January gas and electricity. January 30 Pay $4,000 rent for the building. Of this amount, $2,000 is for January rent, and $2,000 is for February rent. Prepaid Rent and Rent Expense are debited for their appropriate amounts. The following information is available on January 31, 2024: 1. One month of insurance has expired (related to January 4 purchase). 2. One-half month of interest is owed (related to January 15 borrowing). 3. Salaries owed to employees at the end of January are $6,000. Requirement General Journal General Ledger Trial Balance Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-16). Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Tar Heels Unlimited began business on January 1, 2024. During January, the following transactions occurred:
January 1 Issue common stock in exchange for $100,000 cash.
January 2 Purchase inventory on account for $35,000.
January 4 Pay an insurance company $2,400 for a one-year insurance policy.
January 10 Sell inventory on account for $12,000. The cost of the inventory was $7,000.
January 15 Borrow $30,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six
months.
January 20 Pay employees $6,000 salaries for the first half of the month.
January 22 Sell inventory for $10,000 cash. The cost of the inventory was $6,000.
January 24 Pay $15,000 to suppliers for the inventory purchased on January 2.
January 26 Collect $6,000 on account from customers.
January 28 Pay $1,000 to the local utility company for January gas and electricity.
January 30 Pay $4,000 rent for the building. Of this amount, $2,000 is for January rent, and $2,000 is for February
rent. Prepaid Rent and Rent Expense are debited for their appropriate amounts.
The following information is available on January 31, 2024:
1. One month of insurance has expired (related to January 4 purchase).
2. One-half month of interest is owed (related to January 15 borrowing).
3. Salaries owed to employees at the end of January are $6,000.
General
Journal
Requirement
General
Ledger
Trial Balance
Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-16). Review the
'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances.
Transcribed Image Text:Tar Heels Unlimited began business on January 1, 2024. During January, the following transactions occurred: January 1 Issue common stock in exchange for $100,000 cash. January 2 Purchase inventory on account for $35,000. January 4 Pay an insurance company $2,400 for a one-year insurance policy. January 10 Sell inventory on account for $12,000. The cost of the inventory was $7,000. January 15 Borrow $30,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. January 20 Pay employees $6,000 salaries for the first half of the month. January 22 Sell inventory for $10,000 cash. The cost of the inventory was $6,000. January 24 Pay $15,000 to suppliers for the inventory purchased on January 2. January 26 Collect $6,000 on account from customers. January 28 Pay $1,000 to the local utility company for January gas and electricity. January 30 Pay $4,000 rent for the building. Of this amount, $2,000 is for January rent, and $2,000 is for February rent. Prepaid Rent and Rent Expense are debited for their appropriate amounts. The following information is available on January 31, 2024: 1. One month of insurance has expired (related to January 4 purchase). 2. One-half month of interest is owed (related to January 15 borrowing). 3. Salaries owed to employees at the end of January are $6,000. General Journal Requirement General Ledger Trial Balance Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-16). Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances.
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