Question - Rose Company started its operations on January 1, 2018. The following transactions took place during the first month of operations:
January 1: Rose invests $1,150,000 cash to start the business.
January 3: Purchased furniture for $124,000, paying $24,000 in cash and sign a note for the remaining balance.
January 7: Purchased office supplies for $5,000 on credit.
January 11: Paid $11,000 cash for January rent.
January 15: Paid $3,600 cash for office supplies purchased on January 7.
January 20: Services billed to customers amount to $64,000.
January 22: Received utility bills for $7,000 for the month of January.
January 25: Paid $31,600 cash as salaries for the month.
January 29: Received $44,000 cash from customers in payment for services billed on January20.
January 31: Rose withdrew $10,400 from the business for personal use.
Required:
1. Using a table, show the effect of the above transactions on the accounting equation.
2- Prepare Journal entries to record the above transactions.
3- Post to the appropriate ledger accounts.
4- Prepare the trial balance on January 31 2018.
5. Prepare the financial statements of Rose Company on January 31 2018.