I have to create a balance sheet and income statement with the following information: PLEASE HELP!
Record transactions. Prepare the journal entry for each of the following
Transactions that occurred during the first year of operations at ShermanCo.
a. Issued common stock for cash
shares 400,000
par $6.00
total cash $2,400,000
b.At the beginning of the year, borrowed cash from the Lindquist National Bank
And signed a note.
amount borrowed $350,000
interest rate 6%
note due in 4 years
c. Incurred and paid salaries for the year.
amount $250,000
d. Purchased merchandise inventory, paying part in cash and the rest on account.
amount paid in cash $300,000
amount on credit $275,000
$575,000
e. Sold inventory on credit.
inventory cost $280,000
total sales $410,000
f. Paid rent of $121,000 on the sales facilities
During the first 11 months of the year
g. Sold inventory for cash
inventory cost $200,000
total sales $290,000
h. Purchased store equipment, paying part in cash and
The rest on credit
equipment price $150,000
cash paid $65,000
remaining due in 90 days
I. Paid the following outstanding debts
for store equipment $75,000
due to suppliers $100,000
j. Incurred and paid utilities expense for the year.
amount $28,000
k. Collected cash from customers during the year for credit sales
Previously recorded.
amount $375,000
l. At year-end, accrued interest on the note due to Lindquist National
Bank.
amount $21,000
m. At year-end, accrued past-due December rent on the sales facilities.
amount $11,000
Prepare an income statement and balance sheet from transaction data.
