General Journal Using the template provided recognize, record, and summarize the following… 1 answer below »

General Journal Using the template provided recognize, record, and summarize the following business events that occurred in November 2014.

1. Issued 20,000 share of common stock ($1 par value) receiving $125,000 in cash from investors.

2. On the last day of the month, borrowed long-term $25,000 from the bank. (Do not record any interest expense.)

3. Purchased equipment costing $35,000 for cash.

4. Purchased Public Service Company of New Mexico stock as a long-term investment, for $90,000.

5. Declared a dividend $100,000 to be paid in January.

6. Purchased inventory on account for $275,000.

7. Purchased supplies for $200 for cash.

8. Prepaid $1,000 for next month’s advertising.

9. Paid salaries, wages and related payroll liabilities for the pay period ending October 31. Net pay was 30,000; liability for income taxes withheld was $3,000, and employer share of taxes and benefits $1,500.

10. Sales for the month were $520,000: $400,000 in cash; $120,000 in accounts receivable.

11. Incurred cost of goods sold of $210,000.

12. Incurred operating expenses totaling $55,500, $25,000 paid in cash; $30,500 purchased on account.

13. Recognized depreciation for the month of $4,300.

14. Recognize payroll expense for the month. Net pay was $25,000; liability for income taxes withheld was $2,900; and employer’s share of taxes and benefits $1,400.

15. Paid bond interest expense. (Coupon rate is 10%; however, the effective market rate when the bonds were sold was 12%; the par value of the bonds is $400,000; interest is paid semi-annually on November 30 and May 31. The bond discount was originally $46,000 and is being amortized using the straightline method over the 10 year life of the bond.)

Trial Balance

Using the information developed in the previous requirements, prepare a trial balance as of November 30, 2014.

Balance Sheet

Using the information developed in the previous requirements, prepare a balance sheet as of November 30, 2014.

Statement of Operations

Using the information developed in the previous requirements, prepare a statement of operations for the month of November.

Statement of Shareholders’ Equity

Using the information developed in the previous requirements, prepare a statement of Shareholders’ Equity as of November 30, 2014.

Statement of Cash Flows

Using the information developed in the previous requirements, prepare a statement of cash flows for the month of November.

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