ACCT& 202 Review/Preview

Ten transactions...

1. Johnson Corporation was approved by the State of Washington to issue 100,000 shares of $1.00 par common stock. All shares were issued for cash, at par.

(This would be analogous to a proprietor investing $100,000 in a proprietorship.)

2. Johnson Corporation purchased $12000 of equipment and paid cash for it.

3. Johnson Corporation provided $15,000 of services for cash.

4. Johnson Corporation purchased $5,000 of supplies on account.

5. Johnson Corporation purchased $3,000 of advertising on account.

6. Johnson Corporation provided services to a customer for $7,000; a total of $4,000 was received in cash and the rest was on account.

7. Johnson Corporation paid expenses of Rent=$2,000; Salaries=$4,000 and Utilities=$1,000; all expenses were paid in cash.

8. Johnson paid cash on account of $6,000.

9. Johnson received cash on account of $1500.

10. Recorded depreciation on the equipment, $1000.

11. Recorded $2,000 of supplies used up.

Journalize and post all transactions. Create an income statement, retained earnings statement, and balance sheet. With the instructor's assistance, create a cash flow statement (hint--look at the Cash account).