On January 2, 2018 you started a business corporation named Ace Corporation. Business is slow, so...

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Accounting

On January 2, 2018 you started a business corporation named AceCorporation. Business is slow, so you only have a few transactionsduring the year, and it appears you will make very little profit.Given the attached chart of Accounts and other worksheets you arerequired to enter the journal entries to record the transactionsand post them to the ledger as they occur. At the end of thecalendar year you will need to prepare a trial balance. You willalso enter the adjusting journal entries, post the adjustingjournal entries to the ledger and complete the adjusted trialbalance. Next prepare the income statement for year ending December31, 2018. Prepare the statement of stockholders' equity for yearending December 31, 2018. Enter the closing Journal entries andPost them to the ledger.
Requirement 1
Prepare the journal entries for the following transactions andpost each journal entry to the ledger.
1. On January 2, 2018 Ace Corporation receives $300,000 cashfrom the stockholders and in turn issued common stock to them.
2. On January 2, 2018 Ace prepaid $39,000 cash to rent officespace for 3 years.
3. On January 2, 2018 to furnish the office Ace purchased officefurniture and equipment for $17,000 cash.
4. On February 1, 2018 Ace purchased inventory for $20,000 cashto sale to its customers.
5. On April 15, 2018 Ace recorded cash sales of $13,800.
6. On July 1, 2018 Ace obtains a 1-year loan from a local bankfor $50,000. The bank is charging Ace interest at an annualpercentage rate of 8%. Interest is payable January 1, 2019 and July1, 2019.
7. On August 15, 2018 Ace recorded sales on account of$16,000.
8. On September 30, 2018 Ace received $8,000 cash for part ofthe sales on account recorded on August 15, 2018.
9. On November 15, 2018 Ace purchased $15,000 of inventory onaccount.
10. On December 1, 2018 Ace recorded cash sales of $17,500.
11. On December 10, 2018 Ace paid $14,000 cash for the $15,000purchase of inventory on account on November 15, 2018.
12. On December 15, 2018 Ace paid $2,800 for a utility bill.

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Ace CorporationJournalentriesDateAccountDebitCredit2JanCash 300000Common Stock See Answer

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Transcribed Image Text

On January 2, 2018 you started a business corporation named AceCorporation. Business is slow, so you only have a few transactionsduring the year, and it appears you will make very little profit.Given the attached chart of Accounts and other worksheets you arerequired to enter the journal entries to record the transactionsand post them to the ledger as they occur. At the end of thecalendar year you will need to prepare a trial balance. You willalso enter the adjusting journal entries, post the adjustingjournal entries to the ledger and complete the adjusted trialbalance. Next prepare the income statement for year ending December31, 2018. Prepare the statement of stockholders' equity for yearending December 31, 2018. Enter the closing Journal entries andPost them to the ledger.Requirement 1Prepare the journal entries for the following transactions andpost each journal entry to the ledger.1. On January 2, 2018 Ace Corporation receives $300,000 cashfrom the stockholders and in turn issued common stock to them.2. On January 2, 2018 Ace prepaid $39,000 cash to rent officespace for 3 years.3. On January 2, 2018 to furnish the office Ace purchased officefurniture and equipment for $17,000 cash.4. On February 1, 2018 Ace purchased inventory for $20,000 cashto sale to its customers.5. On April 15, 2018 Ace recorded cash sales of $13,800.6. On July 1, 2018 Ace obtains a 1-year loan from a local bankfor $50,000. The bank is charging Ace interest at an annualpercentage rate of 8%. Interest is payable January 1, 2019 and July1, 2019.7. On August 15, 2018 Ace recorded sales on account of$16,000.8. On September 30, 2018 Ace received $8,000 cash for part ofthe sales on account recorded on August 15, 2018.9. On November 15, 2018 Ace purchased $15,000 of inventory onaccount.10. On December 1, 2018 Ace recorded cash sales of $17,500.11. On December 10, 2018 Ace paid $14,000 cash for the $15,000purchase of inventory on account on November 15, 2018.12. On December 15, 2018 Ace paid $2,800 for a utility bill.