Question

ABC Company Inc. is a new company that began operations on October 5th, 2019. The following are the only events that have occurred since the company’s inception. REQUIRED: Prepare the Journal Entries, T accounts, Trial Balance as of 12-31-19, Balance Sheet as of 12-31-19 and the Income Statement for the year ended December 31st for ABC Company Inc. Lastly, please prepare the closing entries and the post closing trial balance.

10-05-19 John Smith, Sole Shareholder of ABC Inc, contributed $80,000 to the company.

10-18-19 ABC Company Inc. paid rent for October 2019 through March of 2020 in the amount of $1200 per month

11-01-19 ABC Company Inc. bought a tractor for $78,000 They made a $15,000 down payment and are financing the rest.

11-08-19 ABC Company Inc. performed $70,000 of Landscaping services and was paid $45,000 immediately and expects to receive the balance at some point in the next 90 days. 11-14-19 ABC Company Inc. received a payment of $80,000 from XYZ Company for work that ABC Company will do over the next few months.

11-16-19 ABC Company Inc. bought office supplies for $1000 and paid Cash.

12-02 19 ABC Company Inc. paid salaries in the amount of $2500 for the pay period of November 15th to November 30th

12-07-19 ABC Company Inc. received a payment for the work they performed on 11-08-19 in the amount of $5000

12-14-19 ABC Company Inc. made a $12,000 payment on the tractor that they purchased on 11-18-19 ($1,427 of the payment is for interest) 12-17 19 ABC Company Inc. paid salaries in the amount of $2500 for the pay period of December 1st to December 15th.

12-18-19 ABC Company Inc. bought office supplies for $1200 on account. 12-20-19 ABC Company Inc. paid a utility bill for $600 and made a $150 insurance payment

12-22-19 John Smith, Sole Shareholder of ABC Inc, withdrew $3,000 from ABC Company.

12-23-19 ABC Company did 20% of the work they were paid for on 11-14-19

12-31-19 Prepare the adjusting journal entry to accrue for salaries for the pay period of December 16th to December 31st in the amount of $2500

12-31-19 Prepare the adjusting journal entry that reflects that we have $900 of Office Supplies remaining as of 12-31-19

12-31-19 Prepare the adjusting journal entry to record depreciation on the tractor that was purchased on 11-01-2019 (Use Straight Line Depreciation, 5 year life, and $24,000 salvage value)

12-31-19 Prepare the adjusting journal entry to record the adjustment needed for prepaid rent and rent expense.

12-31-19 Prepare the adjusting journal entry to record $127 of interest earned on the company checking account.

12-31-19 Prepare the adjusting journal entry to record $684 of accrued interest owed on the tractor that was purchased on 11-18-19

Answer 1

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