ABC Corporation had the following tr Question

Question

ABC Corporation had the following transactions during the month of May:

<ol>

  • Issued 10,000 shares of common stock for $50,000 cash.
  • Purchased equipment for $25,000, paying $10,000 in cash and the remaining $15,000 on credit.
  • Paid $3,000 for May rent.
  • Sold merchandise costing $8,000 for $12,000 cash.
  • Paid $2,000 for utilities.
  • Received $5,000 from customers on account.
  • Paid $4,000 to suppliers on account.
  • Declared and paid $1,500 in dividends to shareholders.
    • </ol>

    Required:

    <ol>

  • Prepare journal entries for each of the above transactions.
  • Post the journal entries to the appropriate ledger accounts.
  • Prepare a trial balance as of May 31.
  • </ol>
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