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Cash Balance Column Accounts and "Account Receivable"

ABD Co. began operating on January 1st, 2006. on December 31st, 2006 the company records showed the following account balance :
The following transactions occurred during 2006 :
1-   Collected $7,000 from Accounts Receivable.
2-   Purchased supplies of $5,000 in cash.
3-   Purchased equipment for $5,000 with cash. The equipment has an expected life of 4 years and expected salvage value of $1,000.
4-   Paid the salaries payable of $1,000.
5-   Paid rent expenses of $6,000.
6-   The owner drew $2,000 cash for personal uses.
7-   Paid salaries expenses of $3,000.
8-   Paid $4,000 of Accounts payable.

Additional information:

9-   A count of the supplies revealed that $5500 remained on Hand at year-end.

10-   The rent expenses paid in transaction No.3 are related to two years ended by 31st of December 2008.

Required "

1)   Prepare the Journal Entries.
2)   Post them into Only "Cash" balance column Accounts and "Account receivable" & "Account Payable" T-Accounts.

3)   Prepare the adjusting entries.
4)   Prepare the "Income Statement" and the "Balance Sheet" for 2006

Solution Preview

Dear student,
I providing the solution as per the message you sent in reply to my message.Beginning balances of accounts are assumed as follows.
Cash $40000
Account Receivable $15000
Supplies $5000
Account payable ...

Solution Summary

The cash balance column accounts and account receivables are examined.