Jan. 1 - Issued 7,500 shares of no-par common stock for $10 per share.
Jan. 1 - Purchased a machine for $48,000. Monthly depreciation for the machine is $800.
Jan. 6 - Purchased office supplies on account for $6,000.
Jan. 10 - Performed repairs and maintenance on their computer equipment costing $3,500.
Jan. 12 - Purchased inventory for $50,000.
Jan. 15 - Declared and paid $1,500 in dividends to its shareholders.
Jan. 20 - Paid $6,000 for the supplies purchased on January 6.
Jan. 25 - Provided services for which a customer had paid $5,000 in December of 2018 (hint: see the deferred revenue account in the January 1, 2019 trial balance).
Jan. 31 - Paid its employees $25,000 for work performed from December 26 January 25. $3,800 was for work performed in December 2018, and 21,200 was for work performed from January 1 January 25, 2019.
Collected $145,000 in accounts receivable.
Made credit sales for $180,000. The cost of the goods sold was $90,000.
Paid $35,000 to its suppliers for inventory purchased on credit in December 2018
Other information:
At the end of January, Packing Inc. had $2,000 of office supplies on hand.
Monthly depreciation for the Furniture & Fixtures is $500, and monthly depreciation for the computer equipment is $350.
The note payable for $10,000 is a 5-year note that matures on December 31, 2022. The interest on the note is 6% and is payable annually on each December 31st. Packing Inc. made their regularly scheduled interest payment of $600 on December 31, 2018.
During the period January 26 January 31 employees earned an additional $4,000 which will be included in their February paycheck.
How would I make Ending Trial Balance, Adjusted Trial Balance , Closing Trial Balance and Balance sheet of above entries?
Answer & Explanation
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Creating an Ending Trial Balance Adjusted Trial Balance Closing Trial Balance and Balance Sheet involves several steps Lets break down each of these components based on the transactions provided for Packing Inc in January 2019 Step 1 Adjusting Entries Before we can create the adjusted trial balance we need to record the adjusting entries based on the transactions and additional information 1 Depreciation for Machine Monthly Depreciation 800 Adjusting Entry Debit Depreciation Expense 800 Credit Accumulated Depreciation Machine 800 2 Depreciation for Furniture Fixtures Monthly Depreciation 500 Adjusting Entry Debit Depreciation Expense 500 Credit Accumulated Depreciation Furniture Fixtures 500 3 Depreciation for
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