This paper concentrates on the primary theme of SANDUL SNOW REMOVAL CORPORATION HAD THE FOLLOWING TRANSACTIONS DURING ITS FIRST MONTH OF… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Sandul Snow Removal Corporation had the following transactions during its first month of operation, December 2015:
1 Issued share capital for $6,000 cash
1 Purchased a used truck for $9,000: paid $4,000 cash, balance borrowed from the bank
2 Purchased a $2,000 snow plough on credit (recorded as an increase in the cost of the truck)
3 Billed customers $5,000 for December snow removal (Sandul’s customers are billed at the beginning of each month)
5 Purchased salt, sand, and gravel for $500 on credit (recorded as unused supplies)
6 Paid truck repair expenses of $200
7 Paid $360 for a one–year insurance policy effective December
1 (recorded as prepaid insurance)
14 Paid $1,500 for two weeks wages
16 Paid $40 cash for advertizing
20 Received a bill for $350 for truck repairs
24 Purchased tire chains on credit for $100 (recorded as truck operating expense)
24 Collected $3,500 from customers billed on December 3
27 Paid for the purchase made on December 5
28 Collected $400 for snow removal performed today for a new customer
28 Paid $1,500 for two weeks wages
30 Called customers owing $1,500 billed on December 3 and not yet paid
31 Transferred the amount of December’s truck insurance to insurance expense ($30)
31 Counted $100 of salt, sand, and gravel still on hand (recorded the amount used as supplies expense)
31 Recorded three days wages of $450 applicable to December 29, 30, and 31, to be paid in January, 2016.
1. Open general ledger T-accounts accounts for the following (account numbers are indicated in brackets): Cash (101), Accounts Receivable (110), Prepaid Insurance (161), Unused Supplies (173), Truck (184), Bank Loan (201),Accounts Payable (210), Wages Payable (237), Share Capital (320), Service Revenue (470), Advertizing Expense (610), Insurance Expense (631), Supplies Expense (668), Truck Operating Expense (670), and Wages Expense (677).
2. Prepare journal entries to record the December transactions including general ledger account numbers.
3. Post the journal entries to the T-accounts. Total each account.
4. Prepare a trial balance at December 31, 2015. Ensure total debits equal total credits.
5. Prepare an income statement and statement of changes in equity for the month ended December 31, 2015 and a balance sheet at December 31, 2015.