December 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March were as follows: Dec. 2 The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash. Dec. 4 purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance. Dec. 5 Paid Sloan Properties 25,000 to rent office space for the month. Dec. 9 Billed customers 11,300 for services for the first half of March. Dec. 15 paid 7,100 in salaries earned by employees during the first half of March. Dec. 19 Paid Bill’s Auto 9000 for maintenance and repair services on the company truck. Dec. 20 Collected 38000 of the amounts billed to customers on March 9. Dec. 28 Billed customers 14,400 for services performed during the second half of the month. Dec. 30 Paid 75,000 in salaries earned by employees during the second half of the month. Dec. 30 Received an 8,300 bill from SY Petroleum for fuel purchased in March. The entire amount is due by January 15. Dec. 30 Declared a 12,000 dividend payable on January 30. Instructions: Prepare journal entries (including explanations) for each transaction. Post each transaction to the appropriate ledger accounts. Prepare a trial balance dated Dec 31, 2011.
December 2011, Jillian Powell organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March were as follows:
Dec. 2 The Corporation issued 400,000 shares of capital stock to Jillian Powell in exchange for 800,000 cash.
Dec. 4 purchased a truck for 450,000. Made a 150,000 cash down payment and issued a note payable for the remaining balance.
Dec. 5 Paid Sloan Properties 25,000 to rent office space for the month.
Dec. 9 Billed customers 11,300 for services for the first half of March.
Dec. 15 paid 7,100 in salaries earned by employees during the first half of March.
Dec. 19 Paid Bill’s Auto 9000 for maintenance and repair services on the company truck.
Dec. 20 Collected 38000 of the amounts billed to customers on March 9.
Dec. 28 Billed customers 14,400 for services performed during the second half of the month.
Dec. 30 Paid 75,000 in salaries earned by employees during the second half of the month.
Dec. 30 Received an 8,300 bill from SY Petroleum for fuel purchased in March. The entire amount is due by January 15.
Dec. 30 Declared a 12,000 dividend payable on January 30.
Instructions:
- Prepare
journal entries (including explanations) for each transaction. Post each transaction to the appropriate ledger accounts.- Prepare a
trial balance dated Dec 31, 2011.
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