Using the information in P4 6 and P4 7 perform #2990

Using the information in P4- 6 and P4- 7, perform the following steps for Tides Tea Company: In
P4- 6Tides Tea Company began operations on January 1, 2015. During the first year of
business, the company had the following transactions: • January 18: The owners invested $
200,000 (the par value of the stock) into the business and acquired 40,000 shares of common
stock in return. • February 1: Tides bought factory equipment in the amount of $ 45,000. The
company took out a long- term note from the bank to finance the purchase. • February 28: The
company paid cash for rent to cover the 12- month period from March 1, 2015, through
February 29, 2016, in the amount of $ 27,000. • March 1: Tides purchased supplies in the
amount of $ 28,000 on account. • March 22: Tides recorded sales revenue in the amount of $
120,000. Half of this amount was received in cash and half was paid on account. Ignore cost of
goods sold. • May 1: Tides received cash payments to pay off all the customer accounts. • May
29: The company paid wages of $ 34,000 in cash. • July 12: Tides recorded sales revenue in
the amount of $ 180,000, all of which was paid in cash. Ignore cost of goods sold. • July 31:
Tides paid $ 3,200 cash for interest on the note taken out on February 1. • August 8: Tides paid
off the balance owed to a supplier for the purchase made on March 1. • September 1: Tides
paid $ 6,000 cash for utilities. • October 14: Tides paid wages of $ 24,000 in cash. • November
10: Tides recorded sales revenue in the amount of $ 218,000. One payment of $ 100,000 was
received in cash; the remainder of this balance was sold on account. Ignore cost of goods sold.
• December 31: Tides paid a $ 25,000 dividend. IN P4- 7Requireda. Journalize and post the
necessary closing entries. b. Prepare a post- closing trial balance as of December 31View
Solution:
Using the information in P4 6 and P4 7 perform

ANSWER
http://paperinstant.com/downloads/using-the-information-in-p4-6-and-p4-7-perform/

1/1
Powered by TCPDF (www.tcpdf.org)