The following information applies to the questions displayed

The following information applies to the questions displayed below. Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions 1. January 1 Issue 10,000 shares of common stock in exchange for $22,000 in cash. 2. January 5 Purchase land for $14,000. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $7,000 cash 4. January 12 Hire three employees for $1,000 per month. 5. January 18 Receive cash of $11,000 in rental fees for the current month 6. January 23 Purchase office supplies for $1,000 on account. 7. January 31 Pay employees $3,000 for the first month\'s salaries. References

Solution

Part 1 - Journal Entry Worksheet of green wave company

Part 2 - Ledgers of Green wave Company

Cash

Service revenue

Salary expenses

$11000

($3000)

Land

Common stock

$22000

Notes Payable

Salary expenses

Supplies

Equipment

Accounts Payable

Service revenue

Part 3 - Trial Balance of green wave company

Green Wave company

Trial Balance

Transaction	General Journal	Debit	Credit
1	Cash	$22000
	Common stock		$22000
	(Being cash received on issue of common stock)
2	Land	$14000
	Notes Payable		$14000
	(Land purchased against issue of note)
3	Equipment	$7000
	Cash		$7000
	(Equipment purchased on cash paymeny basis)
4	No Entry
	(No entry required since there is no transaction involved)
5	Cash	$11000
	Service Revenue		$11000
	(Cash received for service provided)
6	Supplies	$1000
	Accounts Payable		$1000
	(Supplies purchased on credit terms)
7	Salary expenses	$3000
	Cash		$3000
	(Salary paid to employees)