Financial Accounting: P3-45 Shaw Mercantile Company had the following transactions

Financial Accounting
Problem 3-45 Unifying Concepts: Compound Journal Entries, Posting, Trial Balance
Shaw Mercantile Company had the following transactions during 2009.
a. Jon Shaw began business by investing the following assets, receiving capital stock in exchange:
Cash 30,000
Inventory 34,000
Land 20,000
Building 165,000
Equipment * 13,500
Totals . 262,500
*A note of $6,000 on the equipment was assumed by the company.
b. Sold merchandise that cost $32,000 for $52,000; $20,000 cash was received immediately, and the other $32,000 will be collected in 30 days.
c. Paid off the note of $6,000 plus $500 interest.
d. Purchased merchandise costing $14,000, paying $6,000 cash and issuing a note for $8,000.
e. Exchanged $6,000 cash and $6,000 in capital stock for office equipment costing $12,000.
f. Purchased a truck for $25,000 with $5,000 down and a one-year note for the balance.

1. Journalize the transactions. (Omit explanations.)
2. Post the journal entries using T-accounts for each account.
3. Prepare a trial balance at December 31, 2009.
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