Appendix E Analyzing Transactions with Journal Entries The C

Appendix E Analyzing Transactions with Journal Entries   The Concordia Construction Corporation (CCC) was formed on March 1 of this year. The company is a full service construction company, specializing in excavation and construction of commercial buildings.    Journalize the following transactions for the month of March for Concordia Construction Corporation and prepare a balance sheet and income statement for CCC for the month of March.   March 1. The corporation is organized by selling stock for $100,000.    March 1. Purchase a parcel of land for $28,000, paid $10,000 in cash and issued a promissory note for the balance.    March 1. Purchased excavating equipment with cash for $30,000.    March 1. Purchased a two-year liability insurance premium for $6,464, paying cash.    March 9. Purchased office supplies, on account, for $1,260.    March 11. Purchased a used backhoe for $7,500, paying cash.    March 13. Paid $4,800 to rent an office/warehouse building for one year.    March 14. Paid Brown Construction Company $8,000 for a pole-shed to be used as a yard office. Paid an additional cost of $2,000 to have the pole-shed moved to the Concordia Construction site.,

March 15. Paid employee wages of $14,000.    March 17. Billed Madison Construction Company $8,000 for excavating work preformed on March 13.    March 19. Received $15,000 from Brown Dear Contractors, Inc. for excavating work performed on March 5.    March 21. Paid $8,000 on the note payable signed on March 1.    March 23. Paid $2,300 for advertisement in trade magazine for March.    March 23. Received check from Madison Construction Corporation for $4,000 for work completed in March.     March 25. Received a bill for utilities from Alliant Energy Company for $1,200 to be paid in April.    March 25. Paid BP Oil Company bill for $4,000 for gasoline used during March.    March 27. Billed New Berlin Contractors, Inc. $7,500 for work preformed in March.    March 28. Paid $2,550 for repairs made on bulldozer.     March 29. Recognized insurance expense for the month of March.

March 30. Recognize the employee wages expense of $4,000; these wages to be paid in April.    March 30. Remaining office supplies amount is $600.    March 30. Recognized a portion of the prepaid rent on the office/warehouse.    Post all of the transactions to the appropriate income statement or balance sheet for Concordia Construction Corporation. Concordia Construction Corporation The Income Statement For the Month Ended March 31 Revenues:    Expenses: Excavating Revenues   Employee Wages Expense     Utilities Expense     Office Supply Expense     Advertising Expense     Rent Expense     Gasoline Expense     Insurance Expense     Repairs Expense   Concordia Construction Corporation Balance Sheet as of March 31 Assets:     Cash    Accounts Payable (A/P) Accounts Receivable (A/R) Note Payable Prepaid Insurance   Wages Payable Office Supplies    Land    Common Stock Building    Retained Earnings Equipment    

Analyzing Transactions with Journal Entries   Concordia Construction Corporation   Accounts Revenues   Excavating Revenues Expenses   Employee Wages Expense    Utilities Expense    Office Supplies Expense    Advertising Expense    Rent Expense    Gasoline Expense    Insurance Expense    Repairs Expense Assets   Cash    Accounts Receivable (A/R)    Prepaid Insurance    Prepaid Rent    Office Supplies    Land    Building    Equipment Liabilities   Accounts Payable (A/P)    Note Payable    Employee Wages Payable   Owners Equity Retained Earnings    Owners Equity

Solution

The Concordia Cunstruction Corporation General journal for the month ending March 31, curent year Date Account Title Debit Credit 3/1 Cash 100000 Common Stock 100000 (Common stock issued) 3/1 Land 28000 Cash 10000 Note payable 18000 (Purchase of land) 3/1 Equipment 30000 Cash 30000 (Purchase of equipment) 3/1 Prepaid Insurance 6464 Cash 6464 (Purchase of 2-year insurance) 3/5 Accounts Receivable 15000 Excavation Revenue 15000 (Billing of excavation work) * 3/9 Office Supplies 1260 Accounts payable 1260 (Purchase of office supplies on account) 3/11 Equipment 7500 Cash 7500 (Purchase of a used backhoe) 3/13 Prepaid Rent 4800 Cash 4800 (Payment of 1-year rent for office building) 3/14 Building 10000 Cash 10000 (Cash paid for pole-shed) 3/15 Employe Wages Espense 14000 Cash 14000 (Payment of employe wages) 3/17 Accounts Receivable 8000 Excavation Revenues 8000 (Billing of excavation work) 3/19 Accounts Receivable        15000 Excavation Revenues 15000 (Cash received for excavation work done on March 5)* 3/21 Note payable 8000 Cash 8000 (Payment of cash on note payable) 3/23 Advertising Expense 2300 Cash 2300 (Payment for advertising for March) 3/23 Cash 4000 Accounts Receivable        4000 (Payment received on account) 3/25 Utilities expense 1200 Accounts payable 1200 (Utilties bill for March ) 3/25 Gasoline expenses 4000 Cash 4000 (Payment of gasoline expenses for March) 3/27 Accounts Receivable 7500 Excavation Revenues 7500 (Billing of excavation work) 3/28 Repairs Expense 2550 Cash 2550 (Repair expenses on bulldozer) 3/29 Insurance Expense 269 Prepaid Insurance 269 (Insuranceexpense for March -- 6464 / 24) 3/30 Employe Wages Espense 4000 Wages payable 4000 (Wages accrued and unpaid for March) 3/30 Office supplies expense 660 Office supplies 660 (Office supplies used in March) 3/30 Rent Expense 400 Prepaid Rent 400 (Rent expense for March) The Concordia Cunstruction Corporation Worksheet for the month ending March31, current year Transactions Unadjusted trial balance Adjustments Adjusted trial balance Account Debit Credit Debit Credit Debit Credit Debit Credit Cash 119000 92114 26886 26886 Acounts Receivable 30500 19000 11500 11500 Prepaid insurance 6464 6464 269 6195 Prepaid Rent 4800 4800 400 4400 Office supplies 1260 1260 660 600 Land 28000 28000 28000 Building 10000 10000 10000 Equipment 37500 37500 37500 Accounts payable 9960 9960 9960 Note payable 8000 18000 10000 10000 Wages payable 0 4000 4000 Common Stock 100000 100000 100000 Retained earnings 0 0 Excavating Revenues 30500 30500 30500 Employee wage Expense 14000 14000 4000 18000 Utilities Expense 1200 1200 1200 office supplies Expense 0 660 660 Advertising Expense 2300 2300 2300 Rent Expense 0 400 400 Gasoline Expense 4000 4000 4000 Insurance Expense 0 269 269 Repairs Expense 2550 2550 2550 Total 269574 269574 150460 150460 5329 5329 154460 154460 The Concordia Cunstruction Corporation Worksheet for the month ending March31, current year Transactions Unadjusted trial balance Adjustments Adjusted trial balance Income Statement Balance Sheet Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 119000 92114 26886 26886 26886 Acounts Receivable 30500 19000 11500 11500 11500 Prepaid insurance 6464 6464 269 6195 6195 Prepaid Rent 4800 4800 400 4400 4400 Office supplies 1260 1260 660 600 600 Land 28000 28000 28000 28000 Building 10000 10000 10000 10000 Equipment 37500 37500 37500 37500 Accounts payable 9960 9960 9960 9960 Note payable 8000 18000 10000 10000 10000 Wages payable 0 4000 4000 4000 Common Stock 100000 100000 100000 100000 Retained earnings 0 0 1121 Excavating Revenues 30500 30500 30500 30500 Employee wage Expense 14000 14000 4000 18000 18000 Utilities Expense 1200 1200 1200 1200 office supplies Expense 0 660 660 660 Advertising Expense 2300 2300 2300 2300 Rent Expense 0 400 400 400 Gasoline Expense 4000 4000 4000 4000 Insurance Expense 0 269 269 269 Repairs Expense 2550 2550 2550 2550 Total 269574 269574 150460 150460 5329 5329 154460 154460 29379 30500 125081 125081 Income Summary 1121 Grand total 269574 269574 150460 150460 5329 5329 154460 154460 30500 30500 125081 125081