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Georgia Supply Corporation a merchandising firm prepared the following trial balance as of October 1:  Georgia Supply engaged in the following transactions during October 2011 The company records

Georgia Supply Corporation, a merchandising firm, prepared the following trial balance as of October 1:  Georgia Supply engaged in the following transactions during October 2011. The company records inventory using the perpetual system. Oct. 1 Sold merchandise on account to the Tracker Corporation for $12,000; terms 2/10, n/30, FOB shipping point. Tracker paid $350 freight on the goods. The merchandise cost $6,850. 5 Purchased inventory costing $10,250 on account; terms n/30. 7 Received payment from Tracker for goods shipped October 1. Oct. 15 The payroll paid for the first half of October was $22,000. (Ignore payroll taxes.) 18 Purchased a machine for $8,600 cash. 22 Declared a dividend of $0.45 per share on 45,000 shares of common stock outstanding. 27 Purchased building and land for $125,000 in cash and a $225,000 mortgage payable, due in 30 years. The land was appraised at $150,000 and the building at $300,000. 1. Prepare T-accounts for all items in the October 1 trial balance and enter the initial balances. 2. Record the October transactions directly to the T-accounts. 3. Prepare a new trial balance as of the end ofOctober.

May 14 2020 View more View Less

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