Create a Balance Sheet to record the following transactions for Tayl.pdf
- 1. Create a Balance Sheet to record the following transactions for Taylor Company for the month of March. a. Borrowed $4,500 from Local Bank and Trust b. Investors contributed $10,000 in cash for shares of stock c. Bought inventory costing $2,000 on credit d. Sold inventory that originally cost $400 for $600 on credit e. Purchased a new piece of equipment for $500 cash f. Collected $600 in cash from sale of inventory in (d) above g. Paid for inventory purchased in (c) above, which was originally purchased on credit h. Paid $1,200 in cash for an insurance policy that covers the next year i. Employees salary was $3,000 during the month of February, but have not yet been paid j. Paid employees $2,900 for wages earned and recorded during February Solution Accounting equation Assets Liabilities + Shareholder's equity Cash + Accounts Receivables + Equipment+ Inventory Prepaid Insurance Accounts Payable Loan Outstanding Salary Common stock Retained Earnings a $ 4,500.00 $ 4500 New Balance $ 4,500.00 $ -
- 2. $ - $ - $ - $ - $ 4,500.00 $ - $ - $ - b $ 10,000.00 $ 10,000.00 New Balance $ 14,500.00 $ - $ - $ - $ - $ - $ 4,500.00 $ - $ 10,000.00 $ - c $ 2,000.00 $ 2,000.00 New Balance $ 14,500.00 $ - $ - $ 2,000.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ -
- 3. d $ 600.00 $ (400.00) $ 200.00 New Balance $ 14,500.00 $ 600.00 $ - $ 1,600.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ 200.00 e $ (500.00) $ 500.00 New Balance $ 14,000.00 $ 600.00 $ 500.00 $ 1,600.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ 200.00 f $ 600.00 $ (600.00) New Balance $ 14,600.00 $ - $ 500.00
- 4. $ 1,600.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ 200.00 g $ (2,000.00) $ (2,000.00) New Balance $ 12,600.00 $ - $ 500.00 $ 1,600.00 $ - $ - $ 4,500.00 $ - $ 10,000.00 $ 200.00 h $ (1,200.00) $ 1,200.00 New Balance $ 11,400.00 $ - $ 500.00 $ 1,600.00 $ 1,200.00 $ - $ 4,500.00 $ - $ 10,000.00 $ 200.00 i
- 5. $ 3,000.00 $ (3,000.00) New Balance $ 11,400.00 $ - $ 500.00 $ 1,600.00 $ 1,200.00 $ - $ 4,500.00 $ 3,000.00 $ 10,000.00 $ (2,800.00) j $ (2,900.00) $ (2,900.00) New Balance $ 8,500.00 $ - $ 500.00 $ 1,600.00 $ 1,200.00 $ - $ 4,500.00 $ 100.00 $ 10,000.00 $ (2,800.00) Taylor Company Balance sheet March Assets Cash $ 8,500.00 Prepaid Insurance $ 1,200.00 Inventory
- 6. $ 1,600.00 Equipment $ 500.00 Total Assets $ 11,800.00 Liabilities and shareholder's equity Loan from bank $ 4,500.00 Wages payable $ 100.00 Common Stock $ 10,000.00 Retained earnings $ (2,800.00) Total Liabilities and shareholder's equity $ 11,800.00 Accounting equation Assets Liabilities + Shareholder's equity Cash + Accounts Receivables + Equipment+ Inventory Prepaid Insurance Accounts Payable Loan Outstanding Salary Common stock Retained Earnings a $ 4,500.00 $ 4500 New Balance $ 4,500.00 $ -
- 7. $ - $ - $ - $ - $ 4,500.00 $ - $ - $ - b $ 10,000.00 $ 10,000.00 New Balance $ 14,500.00 $ - $ - $ - $ - $ - $ 4,500.00 $ - $ 10,000.00 $ - c $ 2,000.00 $ 2,000.00 New Balance $ 14,500.00 $ - $ - $ 2,000.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ -
- 8. d $ 600.00 $ (400.00) $ 200.00 New Balance $ 14,500.00 $ 600.00 $ - $ 1,600.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ 200.00 e $ (500.00) $ 500.00 New Balance $ 14,000.00 $ 600.00 $ 500.00 $ 1,600.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ 200.00 f $ 600.00 $ (600.00) New Balance $ 14,600.00 $ - $ 500.00
- 9. $ 1,600.00 $ - $ 2,000.00 $ 4,500.00 $ - $ 10,000.00 $ 200.00 g $ (2,000.00) $ (2,000.00) New Balance $ 12,600.00 $ - $ 500.00 $ 1,600.00 $ - $ - $ 4,500.00 $ - $ 10,000.00 $ 200.00 h $ (1,200.00) $ 1,200.00 New Balance $ 11,400.00 $ - $ 500.00 $ 1,600.00 $ 1,200.00 $ - $ 4,500.00 $ - $ 10,000.00 $ 200.00 i
- 10. $ 3,000.00 $ (3,000.00) New Balance $ 11,400.00 $ - $ 500.00 $ 1,600.00 $ 1,200.00 $ - $ 4,500.00 $ 3,000.00 $ 10,000.00 $ (2,800.00) j $ (2,900.00) $ (2,900.00) New Balance $ 8,500.00 $ - $ 500.00 $ 1,600.00 $ 1,200.00 $ - $ 4,500.00 $ 100.00 $ 10,000.00 $ (2,800.00)