Post the following transactions to the T-Accounts, then prepare 12/31/2006 Balan
ID: 2333778 • Letter: P
Question
Post the following transactions to the T-Accounts, then prepare 12/31/2006 Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flow. 1/7/06 Collected $80,000 on Accounts Receivable 1/15/06 Sold an additional 100,000 shares at $5 per share 2/1/06 Made a sale of $90,000 on account. Cost of inventory sold was $65,000 2/15/06 Bought merchandise inventory for $70,000 cash 3/1/06 Paid vendors $16,000 cash on Accounts Payable 6/30/06 Made payment of $25,000 on Notes Payable 7/1/06 Purchased $10,000 worth of store equipment for Cash. 11/30/06 Made a sale of merchandise for $50,000 cash which reduced inventory $30,000 12/15/06 Declared and paid a $20,000 dividend to shareholders 12/31/06 Recorded $3,000 Rent Income from Unearned Income 12/31/06 Recorded Depreciation for year on equipment of $1,000 12/31/06 Recorded expiration of 1-year prepaid rent expense for $2,000 12/31/06 Sold equipment for $1,000 cash which cost $1,000 when purchased new. The equipment was sold before recording any depreciation Post the following transactions to the T-Accounts, then prepare 12/31/2006 Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flow. 1/7/06 Collected $80,000 on Accounts Receivable 1/15/06 Sold an additional 100,000 shares at $5 per share 2/1/06 Made a sale of $90,000 on account. Cost of inventory sold was $65,000 2/15/06 Bought merchandise inventory for $70,000 cash 3/1/06 Paid vendors $16,000 cash on Accounts Payable 6/30/06 Made payment of $25,000 on Notes Payable 7/1/06 Purchased $10,000 worth of store equipment for Cash. 11/30/06 Made a sale of merchandise for $50,000 cash which reduced inventory $30,000 12/15/06 Declared and paid a $20,000 dividend to shareholders 12/31/06 Recorded $3,000 Rent Income from Unearned Income 12/31/06 Recorded Depreciation for year on equipment of $1,000 12/31/06 Recorded expiration of 1-year prepaid rent expense for $2,000 12/31/06 Sold equipment for $1,000 cash which cost $1,000 when purchased new. The equipment was sold before recording any depreciationExplanation / Answer
Cash Date Transaction Debit $ Transaction Credit $ 1/7/2006 Accounts receivable 80,000 1/15/2006 Common stock 500,000 2/15/2006 Inventory 70,000 3/1/2006 Accounts payable 16,000 6/30/2006 Notes Payable 25,000 7/1/2006 Store Equipment 10,000 11/30/2006 Sales 50,000 12/15/2006 Dividend 20,000 12/31/2006 Store Equipment 1,000 Ending Balance 490,000 TOTAL 631,000 TOTAL 631,000 Accounts receivable Date Transaction Debit $ Transaction Credit $ 1/7/2006 Cash 80,000 2/1/2006 Sales 90,000 12/31/2006 Ending Balance 10,000 TOTAL 90,000 TOTAL 90,000 Common stock Date Transaction Debit $ Transaction Credit $ 1/15/2006 Cash 500,000 TOTAL TOTAL 500,000 Sales Date Transaction Debit $ Transaction Credit $ 2/1/2006 Accounts receivable 90,000 11/30/2006 Cash 50,000 TOTAL 140,000 Cost of goods sold Date Transaction Debit $ Transaction Credit $ 2/1/2006 Inventory 65,000 11/30/2006 Inventory 30,000 TOTAL 95,000 Inventory Date Transaction Debit $ Transaction Credit $ 2/1/2006 Cost of goods sold 65,000 2/15/2006 Cash 70,000 11/30/2006 Cost of goods sold 30,000 12/31/2006 Accounts payable Date Transaction Debit $ Transaction Credit $ 3/1/2006 Cash 16,000 Notes Payable Date Transaction Debit $ Transaction Credit $ 6/30/2006 Cash 25,000 Store Equipment Date Transaction Debit $ Transaction Credit $ 7/1/2006 Cash 10,000 12/31/2006 Cash 1,000 12/31/2006 Ending balance 9,000 Dividend Date Transaction Debit $ Transaction Credit $ 12/15/2006 Cash 20,000 Rent Income Date Transaction Debit $ Transaction Credit $ 12/31/2006 Unearned Income 3,000 Unearned Income Date Transaction Debit $ Transaction Credit $ 12/31/2006 Rent Income 3,000 Deprecition Expenses Date Transaction Debit $ Transaction Credit $ 12/31/2006 Accumulated depreciation-Equipment 1,000 Accumulated depreciation-Equipment Date Transaction Debit $ Transaction Credit $ 12/31/2006 Deprecition Expenses 1,000 Prepaid Rent Date Transaction Debit $ Transaction Credit $ 12/31/2006 Rent Expenses 2,000 Rent Expenses Date Transaction Debit $ Transaction Credit $ 12/31/2006 Prepaid Rent 2,000 Income Statement Amount $ Amount $ Sales 140,000 Less: Cost of goods sold (95,000) Gross income 45,000 Other income; Rent income 3,000 Less: Operating expenses Deprecition Expenses 1,000 Rent Expenses 2,000 Total operating expenses (3,000) Net income 45,000 Note: The given informations are not sufficient to prepare balance sheet and cash flow statement.