Question

Exercise 2-19A Record transactions, post to T-accounts, and prepare a trial balance (LO2-4, 2-5, 2-6) [The following information applies to the questions displayed below.] Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions. 1. January 1 Issue 10,000 shares of common stock in exchange for $39,000 in cash. 2. January 5 Purchase land for $22,500. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $8,700 cash. 4. January 12 Hire three employees for $2,700 per month. 5. January 18 Receive cash of $12,700 in rental fees for the current month. 6. January 23 Purchase office supplies for $2,700 on account. 7. January 31 Pay employees $8,100 for the first month's salaries.

Answer 1

Answer:

Transactions,

1. January 1 Issue 10,000 shares of common stock in exchange for $39,000 in cash.

Dr.Cash   39,000

Cr.Share Capital 39,000

2. January 5 Purchase land for $22,500. A note payable is signed for the full amount.

Dr.Land   22,500

Cr.Note Payable  22,500

3. January 9 Purchase storage container equipment for $8,700 cash.

Dr.Storage Container 8,700

Cr.Cash   8,700

4. January 12 Hire three employees for $2,700 per month.

No Transaction

5. January 18 Receive cash of $12,700 in rental fees for the current month.

Dr.Cash   12,700

Cr.Rental fee Income 12,700

6. January 23 Purchase office supplies for $2,700 on account.

Dr.Office Supplies 2,700

Cr.Account Payable 2,700

7. January 31 Pay employees $8,100 for the first month's salaries.

Dr.Salary Expense 8,100

Cr.Cash   8,100

T-accounts, and Trial balance

A file of MS Excel is attached in which T accounts and Trial balance has been prepared in separate worksheets. Please find the File

Download xlsx