Prepare a trial balance at December 31, 2003.

W Merchandise Company had the following transactions during 2003 a. Sam Jeakins began business by investing the following assets, receiving capital stock in exchange:

Cash

$020,000*

Inventory

37,000*

Land

25,500*

Building .

160,000*

Equipment

12,500*

Totals .

$255,000*

b. Sold merchandise that cost $30,000 for $45,000; $15,000 cash was received immediately, and the other $30,000 will be collected in 30 days.

c. Paid off the note of $5,000 plus $300 interest.

d. Purchased merchandise costing $12,000, paying $2,000 cash and issuing a note for $10,000.

e. Exchanged $2,000 cash and $8,000 in capital stock for office equipment costing $10,000.

f. Purchased a truck for $15,000 with $3,000 down and a one-year note for the balance.

Requiared

1. Journalize the transactions. (Omit explanations.)

2. Post the journal entries using T-accounts for each account.

3. Prepare a trial balance at December 31, 2003.

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