1. ABC Co. started business on Jan 2010. On that day the company issued common stock in exchange for $50,000. Prepare the journal entry.
2. ABC CO. started business on Jan 2010. At the beginning of Jan, ABC paid $3,400 for supplies.
3. ABC sold watches costing the company a total of $63,000 to produce. Prepare the journal entry.
4. ABC customers paid $42,000 for services that will not be performed until February.
5. ABC sold watches to customers for $90,000 cash. Prepare the journal entry.
6. ABC purchased supplies for $5,000. At the end of the month, ABC takes inventory and finds out the remaining supplies are worth $2,400. Prepare an adjusting journal entry.
7. ABC had a balance of $12,000 in unearned revenue on February 1st. At the end of February, the unearned revenue balance was $5,000. Prepare the adjusting journal entry to reflect this information.
8. At the start of February, ABC had salaries payable outstanding of $6,000. On February 4th. ABC sent out paychecks to its employees valued at $10,000. Prepare the journal entry.
9. During January, ABC had earned revenues of $50,000. The customers paid 30% cash and the remaining amount on the account. Prepare the journal entry.
10. During January, ABC purchased supplies for
$7,000. ABC paid the supplier 40% in cash and the remaining balance on account.
Common Stock 50,000
Cost of goods sold 63,000
The solution discusses journal entries in normal business cycles.