1) Prepare the Journal Entries for each transaction
2) Enter the Journal Entries in T-Accounts. Make sure to show
a total on all T-Accounts
3) Prepare the adjusting journal entries that are necessary at
the end of the period.
4) Prepare the Balance Sheet, Income Statement and Statement
of Cash Flows as of and for the
period ending December 31, 2019.
following are the transactions for DML, Inc. who opened their
manufacturing facility on October 1, 2018.
A) Sold $25,000 of Common Stock to a number of different
investors on October 1, 2019.
B) Purchased a 1-year General Liability Insurance Policy on
October 2, for $1,500.
C) Paid a total of $6,000 for six months of rent in advance on
October 1, 2019.
D) Borrowed $12,000 from TD Bank on 10/2/19. Payment is due on
September 30, 2019. The
interest rate is 6% compounding annually.
E) Purchased $12,000 in manufacturing Equipment on 10/3/19.
The equipment will be
depreciated for 10 years.
F) Received $15,000 in advance for material it will deliver to
a customer in January, 2020.
