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Jones Corporation Comprehensive Accounting Problem

The following transactions pertain to Jones Corporation for 2009.

Jan 1. Began operations when the business acquired $50,000 cash from the issue of common stock.

Mar. 1 Paid rent for office space for two years, $18,000 cash.

Apr. 1 Borrowed $40,000 cash from First National Bank. The note issued had an 8 percent annual rate of interest and matured in one year.

Apr. 14 Purchased $950 of supplies on account.

Jun. 1 Paid $27,000 cash for a computer system. The computer system had a five year useful life and no salvage value.

Jun. 30 Received $26,000 cash in advance for services to be provided over the next year.

July 5 Paid $600 of the accounts payable from April 14.

Aug. 1 Billed a customer $9,600 for services provided during July.

Aug. 8 Completed job and received $4,500 cash for services rendered.

Sept. 1 Paid employee salaries of $36,000 cash

Sept. 9 Received $10,500 cash from accounts receivable.

Oct. 5 Billed customers $34,000 for services rendered on account.

Nov. 2 Paid a $2,000 cash dividend to the stockholders.

Dec. 31 Adjusted records to recognize the services provided on the contract of June 30.

Recorded the accrued interest on the note to First National Bank (see April 1)

Recorded depreciation on the computer system used in the business (see June 1)

Recorded $4,500 of accrued salaries as of December 31.

Recorded the rent expense of the year. (see March 1)

Physically counted supplies; $200 was on hand at the end of the period (see April 14)

A> Record the preceding transactions in the general journal.
B> Post the transactions to T-Accounts and calculate the account balances.
C> Prepare a trial balance
D> Prepare the income statement, statement of changes in stockholders' equity, balance sheet and statement of cash flows.
E> Prepare the closing entries at December 31.
F> Prepare a trial balance after the closing entries are posted.


Please help... its greatly appreciated.

Solution Summary

The solution explains a comprehensive accounting problem from recording to transactions to preparing financial statements