The Wyndham Wholesale Company began operations on August 1, 2021. The following transactions occur during the month of August.a. Owners invest $50,000 cash in the corporation in exchange for 5,000 shares of common stock.b. Equipment is purchased for $20,000 cash.c. On the first day of August, $6,000 rent on a building is paid for the months of August and September.d. Merchandise inventory costing $38,000 is purchased on account. The company uses the perpetual inventory system.e. $30,000 is borrowed from a local bank, and a note payable is signed. f. Credit sales for the month are $40,000. The cost of merchandise sold is $22,000.g. $15,000 is collected on account from customers.h. $20,000 is paid on account to suppliers of merchandise.i. Salaries of $7,000 are paid to employees for August.j. A bill for $2,000 is received from the local utility company for the month of August.k. $20,000 cash is loaned to another company, evidenced by a note receivable.l. The corporation pays its shareholders a cash dividend of $1,000.Required:1. Prepare a journal entry for each transaction.2. Prepare an unadjusted trial balance as of August 31, 2021.
The Wyndham Wholesale Company began operations on August 1, 2021. The following transactions occur during the month of August.
a. Owners invest $50,000 cash in the corporation in exchange for 5,000 shares of common stock.
b. Equipment is purchased for $20,000 cash.
c. On the first day of August, $6,000 rent on a building is paid for the months of August and September.
d. Merchandise inventory costing $38,000 is purchased on account. The company uses the perpetual inventory system.
e. $30,000 is borrowed from a local bank, and a note payable is signed.
f. Credit sales for the month are $40,000. The cost of merchandise sold is $22,000.
g. $15,000 is collected on account from customers.
h. $20,000 is paid on account to suppliers of merchandise.
i. Salaries of $7,000 are paid to employees for August.
j. A bill for $2,000 is received from the local utility company for the month of August.
k. $20,000 cash is loaned to another company, evidenced by a note receivable.
l. The corporation pays its shareholders a cash dividend of $1,000.
Required:
1. Prepare a
2. Prepare an unadjusted
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