The following events apply to Paradise Vacations's first year of operations: 1. Acquired $32,000 cash from the issue of common stock on January 1, Year 1. 2. Purchased $1,400 of supplies on account. 3. Paid $5,640 cash in advance for a one-year lease on office space. 4. Earned $40,350 of revenue on account. 5. Incurred $14,300 of other operating expenses on account. 6. Collected $30,000 cash from accounts receivable. 7. Paid $9,600 cash on accounts payable. 8. Paid a $4,200 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $270 of supplies on hand at the end of the accounting period. 10. The lease on the office space covered a one-year period beginning November 1. 11. There was $4,800 of accrued salaries at the end of the period. Required a. Record these transactions in general journal form. b. Post the transaction data from the journal to ledger T-accounts. c. Prepare a trial balance.

The following events apply to Paradise Vacations's first year of operations: 1. Acquired $32,000 cash from the issue of common stock on January 1, Year 1. 2. Purchased $1,400 of supplies on account. 3. Paid $5,640 cash in advance for a one-year lease on office space. 4. Earned $40,350 of revenue on account. 5. Incurred $14,300 of other operating expenses on account. 6. Collected $30,000 cash from accounts receivable. 7. Paid $9,600 cash on accounts payable. 8. Paid a $4,200 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $270 of supplies on hand at the end of the accounting period. 10. The lease on the office space covered a one-year period beginning November 1. 11. There was $4,800 of accrued salaries at the end of the period. Required a. Record these transactions in general journal form. b. Post the transaction data from the journal to ledger T-accounts. c. Prepare a trial balance.

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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