Ch4_Demo_Problems

Ch4_Demo_Problems - Demonstration Problems for Chapter 4...

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Demonstration Problems for Chapter 4 Demonstration Problem 4-1 Recording Procedures The following events apply to Braxton Personnel Advisory Services Company (BPASC). 1. On January 1, 2003, issued common stock for $5,000 cash. 2. Paid $1,800 cash to rent office space for one year beginning on February 1, 2003. 3. Received a $2,400 cash advance as a retainer for services to be provided. Services were to be provided evenly for one year beginning on March 1, 2003. 4. On December 1, 2003, paid dividends of $200 to the stockholders. Required a. Record the events in ledger T-accounts and prepare an unadjusted trial balance. b. Record necessary adjusting entries in ledger T-accounts and prepare an adjusted trial balance. c. Use the adjusted trial balance to prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows. d. Record the closing entries in ledger T-accounts and prepare a post-closing trial balance. 1
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Demonstration Problem 4-2 General Journal Entries Required Record the following transactions in general journal entry form. Record the event number in the date column. 1. Issued common stock for $5,000 cash. 2. Borrowed $4,000 cash from a local bank. 3. Purchased $500 of supplies on account. 4. Recognized revenue of $8,000 for services provided on account. 5.
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Ch4_Demo_Problems - Demonstration Problems for Chapter 4...

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