Take the following transactions through the accounting cycle. The problem covers the month of January...
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Accounting
Take the following transactions through the accounting cycle. The problem covers the month of January only. You should do the following:
1/1 Bill Jones started a new business called Bills Landscaping Service. Inc. The company issued 300,000 shares of common stock, par $1, for $300,000. The $300,000 was deposited in a bank account.
1/1 Purchased a truck for $40,000, no salvage value, useful life 5 years, for cash. 1/2 Purchased a 3 year insurance policy for $7,200 cash. 1/3 Purchased land $10,000; paid $ 8,000 down, gave a non-interest bearing note payable for the balance
1/15 Signed a contract to perform landscaping for $48,000. The job will take 2 months and we are paid at the beginning of the job. We begin work on the job immediately.
1/15 Signed a contract to perform landscaping for $40,000. The job will take 2 months and we are paid at the end of the job. We begin work on the job immediately.
1/15 Purchased a computer for $ 4,800 cash, no salvage value, life 4 years.
1/20 Purchased office supplies for $ 2,000 on account
Additional Information: On 1/31, owed $800 wages and office supplies on hand totaled $ 1,500. Prepare a trial balance.
Question: Prepare a trial balance.
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