Prepare a Trial Balance of the transactions above. May use T-Accounts, ledger tr
ID: 2449004 • Letter: P
Question
Prepare a Trial Balance of the transactions above. May use T-Accounts, ledger tracking or any other method to summarize the ending balance.
John's Catering was formed on January 1, 2015. The following transactions occurred during John's first month of operations: 1. On January 1, John invests $10,000 cash as a contribution of capital to start his business. 2. On January 1, John borrows $5,000 from the local bank to be repaid in 3 years. The cash is received on the same day. 3. On January 2, John pays $50 cash for liability insurance for the month of January. 4. On January 3, John purchases $5,000 in cooking equipment for use in his business. The sale was made on account. Assume no depreciation. 5. On January 4, John receives $500 cash for a catering service to be performed at a later date. 6. On January 6, John performs a catering service worth $2,250 - the sale occurred on account. 7. On January 9, John purchases $50 in supplies on account that were consumed in the current period 8. On January 24, the invoice is paid for transaction #4. 9. On January 25, John makes an interest only payment of $50 for the loan mentioned in #2. The interest is for the month of January. 10. On January 25, John performs a service for $200 and the cash payment is immediately received. 11. On January 26, John purchases $25 worth of supplies for use in a future period. Cash was paid for these supplies. 12. On January 29, John performs the service from transaction #5. 13. On January 27, John collects a portion ($500) of the amount owed for the service performed in #6. 14. On January 31, John pays his employees $2,825 in cash for work performed January 1 - January 31. 15. On January 31, John Smith pays $100 in cash for an insurance policy that begins Febuary 1.Explanation / Answer
Prepare a Trial Balance of the transactions above. May use T-Accounts, ledger tr