Accounting Homework

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Problem

Morgan Corporation opened the year 20X6, with the following trial balance information:
Cash $ 25,000
Accounts Receivable 75,000
Land 150,000
Accounts Payable - $ 60,000
Loan Payable - 30,000
Capital Stock - 50,000
Retained Earnings - 110,000
Dividends - -
Revenues - -
Salaries Expense - -
Rent Expense - -
Supplies Expense - -
Interest Expense - -
$ 250,000 $ 250,000
January's transactions are listed below:
Jan. 2 Collected $10,000 on an open account receivable.
Jan. 3 Purchased additional tract of land for $20,000 cash.
Jan. 5 Provided services on account to a customer for $15,000.
Jan. 7 Borrowed $12,000 on a term loan payable.
Jan. 11 Paid salaries of $3,000.
Jan. 12 Provided services to customers for cash, $11,000.
Jan. 15 Purchased (and used) office supplies on account, $2,000.
Jan. 17 The company paid shareholders a $2,500 dividend.
Jan. 20 Paid rent of $1,700.
Jan. 23 Paid salaries of $4,000.
Jan. 24 Paid $16,000 on the open accounts payable.
Jan. 29 Collected $50,000 on accounts receivable.
Jan. 31 Repaid loans of $22,000.
Jan. 31 Paid interest on loans of $600.
(a) Create the general ledger accounts, and enter the initial balances at the start of the month of January. This requirement is already completed on the worksheets.
(b) Prepare journal entries for January's transactions.
(c) Post January's transactions to the appropriate general ledger accounts.
(d) Prepare a trial balance as of January 31.
(e) Prepare an income statement and statement of retained earnings for January, and a balance sheet as of the end of January.
&R&"Myriad Web Pro,Bold"&20I-02.04
I-02.04

Worksheet(a)

CASH
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 25,000
ACCOUNTS RECEIVABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 75,000
LAND
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 150,000
ACCOUNTS PAYABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 60,000
LOAN PAYABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 30,000
CAPITAL STOCK
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 50,000
RETAINED EARNINGS
Date Description Debit Credit Balance
Jan. 1 Balance forward - - 110,000
DIVIDENDS
Date Description Debit Credit Balance
Jan. 1 - - -
REVENUES
Date Description Debit Credit Balance
Jan. 1 - - -
SALARIES EXPENSE
Date Description Debit Credit Balance
Jan. 1 - - -
SUPPLIES EXPENSE
Date Description Debit Credit Balance
Jan. 1 - - -
RENT EXPENSE
Date Description Debit Credit Balance
Jan. 1 - - -
INTEREST EXPENSE
Date Description Debit Credit Balance
Jan. 1 - - -
&L&"Myriad Web Pro,Bold"&12Name: Date: Section: &R&"Myriad Web Pro,Bold"&20I-02.04 (a)(c)
I-02.04 (a)&(c)

Worksheet(b)

GENERAL JOURNAL      Page 1
Date Accounts Debit Credit
Jan. 2
Jan. 3
Jan. 5
Jan. 7
Jan. 11
Jan. 12
GENERAL JOURNAL     Page 2
Date Accounts Debit Credit
Jan. 15
Jan. 17
Jan. 20
Jan. 23
Jan. 24
Jan. 29
GENERAL JOURNAL   Page 3
Date Accounts Debit Credit
Jan. 31
Jan. 31
&L&"Myriad Web Pro,Bold"&12Name: Date: Section: &R&"Myriad Web Pro,Bold"&20I-02.04 (b)
I-02.04 (b)

Worksheet(c)

MORGAN CORPORATION
Trial Balance
January 31, 20X6
Debits Credits
Cash $ - $ -
Accounts receivable - -
Land - -
Accounts payable -
Loan payable -
Capital stock -
Retained earnings -
Revenues -
Salaries expense - -
Supplies expense - -
Rent expense - -
Interest expense - -
Dividends - -
$ - $ -
&L&"Myriad Web Pro,Bold"&12Name: Date: Section: &R&"Myriad Web Pro,Bold"&20I-02.04 (d)
I-02.04 (d)

Worksheet(d)

MORGAN CORPORATION
Income Statement
For the Month Ending January 31, 20X6
Revenues
Services to customers $ -
Expenses
Salaries $ -
Supplies -
Rent -
Interest - -
Net income $ -
MORGAN CORPORATION
Statement of Retained Earnings
For the Month Ending January 31, 20X6
Beginning retained earnings $ -
Plus: Net income -
$ -
Less: Dividends -
Ending retained earnings $ -
MORGAN CORPORATION
Balance Sheet
January 31, 20X6
Assets
Cash $ -
Accounts receivable -
Land -
Total assets $ -
Liabilities
Accounts payable $ -
Loan payable -
Total liabilities $ -
Stockholders' equity
Capital stock $ -
Retained earnings -
Total stockholders' equity -
Total liabilities and equity $ -
&L&"Myriad Web Pro,Bold"&12Name: Date: Section: &R&"Myriad Web Pro,Bold"&20I-02.04 (e)
I-02.04 (e)