At the end of last month, Ajax Inc. had the following balancesin its accounts:Cash...At...

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Accounting

At the end of last month, Ajax Inc. had the following balancesin its accounts:
Cash $ 5,000
Inventory $10,000
Equipment $ 3,000
Land $10,000
Owe Jones $10,000
Common Stock $10,000
Retained Earnings $ 8,000
Set up the initial Balance Sheet for this month, make theappropriate entries for this month using the Accounting Equation,and show the ending Balance Sheet for this month. The followingshould be included for this month:
a. Buy inventory from Jones on credit for $10,000
b. Sell goods for $4,000
c. Sell common stock for $1,000
d. Pay wages of $2,000
e. Pay tax of $1,000
f. Sell goods to Smith on credit for $15,000
g. Pay rent of $100
h. Pay Jones $2,000
i. Depreciate equipment $200
j. Inventory at the end of the month is worth $7,000

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4.1 Ratings (703 Votes)

Balance Sheet of Ms Ajay Inc at the beginning of the Month Assets Liabilities Cash 5000 Owing to Jones 10000 Inventory 10000 Retained earnings 8000 Equipment 3000 Common Stock 10000 Land 10000 Total 28000 28000 Treatment of entries during the month using Acounting equation See Answer

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In: AccountingAt the end of last month, Ajax Inc. had the following balancesin its accounts:Cash...At the end of last month, Ajax Inc. had the following balancesin its accounts:Cash $ 5,000Inventory $10,000Equipment $ 3,000Land $10,000Owe Jones $10,000Common Stock $10,000Retained Earnings $ 8,000Set up the initial Balance Sheet for this month, make theappropriate entries for this month using the Accounting Equation,and show the ending Balance Sheet for this month. The followingshould be included for this month:a. Buy inventory from Jones on credit for $10,000b. Sell goods for $4,000c. Sell common stock for $1,000d. Pay wages of $2,000e. Pay tax of $1,000f. Sell goods to Smith on credit for $15,000g. Pay rent of $100h. Pay Jones $2,000i. Depreciate equipment $200j. Inventory at the end of the month is worth $7,000