I need help creating the T accounts (ledger accounts) for this scenario and then need to create an income statement , statement of owners equity and a balance sheet. Use the information in the attache
I need help creating the T accounts (ledger accounts) for this scenario and then need to create an income statement , statement of owners equity and a balance sheet. Use the information in the attached file.
The University of Texas at Austin
ACC 310F: Foundations of Accounting (Online)
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Super Chair King was organized at the beginning of January.
Throughout January, the company had the
The owners started the company with a $125,000 investment.
The company borrowed $65,000 from a bank by signing a long-term note.
The company purchased a building for $105,000, which will serve as warehouse and sales
Inventory costing $60,000 was purchased.
Sold $25,000 of inventory to a customer for $54,000 on account.
The customer remitted 50% of the amount owed to the company
The owners of the company invested another $40,000.
The company wanted to increase sales so they rented ad space on a billboard for $5,000.
The company purchased another $40,000 of inventory on account.
Sold $50,000 of inventory to a customer for $75,000.
The company paid $2,000 in dividends to owners.
Paid wages to staff of $9,800.
Paid back $5,600 on the bank loan.
Of this amount, $3,500 represents interest expense.
Prepare journal entries for the transactions above using the following account names as needed:
Cost of Goods Sold
Prepare T-accounts (i.e. ledger accounts) and post the journal entries to the appropriate accounts.
Use the information in part (b) to prepare an income statement, statement of owner’s equity and
balance sheet for the company.