Reference no: EM132554896

Question 1: Following are some transactions, please provide solution for these transaction in form of accounting equation. :-

1. ABC Company issued Stock and raised capital worth $ 250,000 at Par.

2. Paid rent for month $ 2,000.

3. Paid for insurance for a year $ 12,000.

4. Purchased inventory of $ 21,800 on account.

5. Sold all inventory for $ 35,700, customer has promised to pay within a month.

6. Issued 12 year, 7% bonds worth $ 45,000 at par.

7. Customer paid for the dues.

8. Paid for inventory.

9. Paid salaries to employees $ 36,000.

10. Paid utility expenses $ 7,950.

11. Purchase equipment in cash $ 22,220.

12. Declared dividends of $ 25,500.

Question 2: Record journal entries for following transactions Occurred during January, 201X, Prepare T accounts and Trial balance

1. Issued stock to investors for $135,000 cash

2. Purchased office furniture for $30,800, agree to pay the entire amount in next 6 installments,Starting from Feb 1..

3. Purchased computers for the office for $2,200 cash.

4. Acquired equipment costing $52,000, paid cash.

5. Paid for rent for the next 3 months, $9,900.

6. Purchased office supplies for $399 cash.

7. Purchased inventory , $55,000 on account.

8. Paid $11,000 to the supplier for the inventory.

9. Hired an assistant who will begin work from third week of January. Company will pay $ 5,200 per week.

10. Borrowed $10,000 from the bank to be repaid in 6 month at 10% interest annually. .

11. sold all inventory on account for $77,400.

12. Declared dividend $ 12,000

13. Received a $960 utility bill for this month.

14. Paid $700 for janitorial service.

15. Collected $67,400 owed from customers.and also received $ 50,000 as advance payment.

Question 3: Provide adjusting entries at the end of month for the following events. Post them in to ledgers and Prepare Adjusted trial balance.

Adjustments:

1. One month rent has expired.

2. Wages are due for assistant's work.

3. One month interest is due on Note.

4. Provide depreciation on furniture @ 10% and on equipment @ 8% annually.

5. Estimated tax liability is $ 5,200

6. Office supplies on hand at the end of month is $90

7. Company has provided service of $ 35,000 against advance receipt.

Question 4: After completing Assignment 3, prepare Income statement and balance sheet from the adjusted trial balance prepared in assignment 3.

Question 5: Take ASSIGNMENT 4 as a base and provide closing entries, prepare post closing trial balance and also provide for reversing entries.

Question 6: Prepare accounting worksheet for financial statements using the Data of ASSIGNMENT