ACCT 504 Case Study 1 (Gordon Construction)

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Study-1-(Gordon-Construction)
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record
(journalize and post) transactions in the books; construct and use a
trial balance) During the first month of operation of Gordon
Construction, Inc., completed the following transactions:
June
2
Gordon received $55,000 cash and issued common stock to the
stockholders.
3 Purchased supplies, $3,000, and equipment, $5,200, on account.
4 Performed services for a client and received cash, $6,300.
7 Paid cash to acquire land, $37,000.
11 Performed services for a customer and billed the customer, $1,200.
Johnson expects to collect within one month.
16 Paid partial for the equipment purchased June 3 on account $2,800.
17 Paid the telephone bill, $230.
18 Received partial payment from customer on account, $700.
22 Paid the water and electricity bills, $400.
29 Received $5,000 cash for repairing the pipes of a customer.
30 Paid employee salary, $4,300.
30 Declared and paid dividends of $3,000.
Requirements
1. Record each transaction in the journal. Key each transaction by
date. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as
posting references.
3. Prepare the trial balance of Gordon Construction, Inc., at June30,
2014.
4. The manager asks you how much in total resources the business
has to work with and, how much it owes.
Adjust the accounts; construct the financial statements) Record the
following month end adjusting entries for Gordon Construction, Inc.
at June 30, 2014
Month end accruals at June 30, 2014:
a. Accrued advertising revenue at June 30, $3,100.
b. Supplies used during June, $3,090.
c. Accrued salary expense at June 30 for Monday, Tuesday, and
Wednesday. The five-day weekly payroll is $6,100 and will be paid on
Friday.
Requirement 2
Prepare adjusted trial balance for Gordon Construction at June 30,
2014.