Write journal entries Prepare an Income statement Prepare a statement of retained earnings
On December 1, Bob waldo started an auto repair shop, Waldo’s Quality automotive. The following transactions occurred during December:
12/01 Waldo contributed $70,000.00 cash to the business in exchange for common stock.
12/01 Paid 1,750.00 for a five -month insurance policy, starting December 1st.
12/01 Purchased $12,000.00 of equipment, paying cash
12/09 Paid $20,000.00 cash to purchase land
12/10 Purchased office supplies on account for $2,800.00
12/19 Borrowed $15,000.00 from the bank. Waldo signed a note payable. The note is due in 5 years.
12/22 Paid 1,300.00 for advertising expenses
12/26 Paid 900.00 on account
12/28 The business received a $280.00 bill for utilities. The bill is to be paid in January.
12/31 Revenues earned during the month included $16,000.00 in cash, and $3,600.00 on account.
12/31 The business received $1440.00 for auto screening services to be performed next month.
12/31 Paid cash dividends of $5,500.00 to stockholders.
12-31 Paid employees’ salaries $3,800.00, and Building rent #1,200.00, record as a compound entry.
Adjustment data:
- Office supplies used during the month, $1,800.00
Depreciation for the month, $200.00- One month of insurance has expired
- Accrued interest expense, $75.00
Use the information furnished above to:
Write
Prepare an Income statement
Prepare a statement of
Prepare the balance sheet
Prepare closing entries
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