1. Received $50,000 cash from the issue of common stock.
The following events apply to Charles Event Service in Year 1, its first year of operations.
Received $50,000 cash from the issue of common stock.
Paid $22,000 cash to purchase land.
Purchased $1,250 of supplies on account.
Earned $46,000 of service revenue on account.
Recognized $850 of supplies expense.
Collected $42,500 of cash from accounts receivable.
Incurred $15,000 of operating expenses on account.
Paid a $9,000 cash dividend to the stockholders.
Made a $11,500 payment on accounts payable.
Required:
Record the events in the general journal.
Post the events to T-accounts and determine the ending account balances.
Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.
In this exercise, we will record each of the transactions in the general journal and post them to T-accounts. Then, we will prepare the trial balance for the company.