Chapter 4, Problem 4.6P

Journal Entries; Post to the General Ledger; Prepare a Trial Balance. Tides Tea Company began operations on January 1. 2018. During the first year of business, the company had the following transactions:

• January 18: The owners invested $200,000 (the par value of the stock) into the business and acquired 40,000 shares of common stock in return.
• February 1: Tides bought factory equipment in the amount of $45,000. The company took out a long-term note from the bank to finance the purchase.
• February 28: The company paid cash for rent to cover the 12-month period from March 1, 2018, through February 29. 2019, in the amount of $27,000.
• March 1: Tides purchased supplies in the amount of $28,000 on account.
• March 22: Tides recorded sales revenue in the amount of $120,000. Half of this amount was received in cash and half was paid on account. Ignore cost of goods sold.
• May 1: Tides received cash payments to pay off all the customer accounts.
• May 29: The company paid wages of $34,000 in cash.
• July 12: Tides recorded sales revenue in the amount of $180,000, all of which was paid in cash. Ignore cost of goods sold.
• July 31: Tides paid $3,200 cash for interest on the note taken out on February 1.
• August 8: Tides paid off the balance owed to a supplier for the purchase made on March 1.
• September 1: Tides paid $6,000 cash for utilities.
• October 14: Tides paid wages of $24,000 in cash.

  $100,000 was received in cash; the remainder of this balance was sold on account Ignore cost of goods sold.

• December 31: Tides declared and paid a $25,000 dividend.

The chart of accounts used by Tides Tea Company is as follows:

Chart of Accounts
Group	Account #	Account Title
100: Assets	101	Cash
	102	Accounts Receivable
	103	Supplies
	104	Prepaid Rent
	110	Equipment
	112	Accumulated Depreciation—Equipment
200: Liabilities	201	Accounts Payable
	203	Wages Payable
	210	Interest Payable
	220	Notes Payable
300: Equity	301	Common Stock
	310	Retained Earnings
	320	Dividends
400: Revenues	401	Sales Revenue
500: Expenses	501	Wage Expense
	502	Utilities Expense
	503	Rent Expense
	504	Administrative Expense
	505	Insurance Expense
	506	Supplies Expense
	510	Depreciation Expense—Equipment
600: Other	601	Income Summary

Required

1. a. Journalize the transactions for the year Omit explanations.
2. b. Post the journal entries to the general ledger.
3. c. Prepare an unadjusted trial balance as of December 31.