50.1K

Verified Solution

Link Copied!

1. Given a random list of accounts with their normal balances,prepare a trial balance for Luxury Gifts Corporation as of December31, 2019

Common stock       $5,500                   Accounts Receivable        $2,000

Note Payable3,500                   ServiceRevenue              12,000

Supplies                    500                   InsuranceExpense                700

Prepaid Insurance  1,400                   Equipment                       9,500

Salary Expense      8,000                   AccountsPayable             1,000

Dividends              2,000                   Cash                               1,000

Utilities Expense     1,000                   RetainedEarnings            4,100

2. Prepare Journal Entries in good form for the followingtransactions for the Goodland Company

1. The owner invested cash of $14,000 and office equipment valuedat $6,500 into the business and received common stock inexchange

2. Supplies were purchase on account for $1,000

3. Payment of $750 was made for one month’s rent on the store

4. A client was billed 1,500 for services rendered

5. The company declared and paid a cash dividend of $300

3. Analyze the following transactions. Indicate which accounts areaffected and whether they will increase or decrease.

1. Owner investment of cash into the business
2. Payment of a utility bill
3. Purchase of inventory for cash
4. Payment of an accounts payable
5. Performing a service on account
6. Collecting cash from a customer as payment on his account