Our Company, Paddle Away, began operations on 1-1-12 and the year ended on 12-31-12. We buy Kayaks and sell them in a retail store. These were our January 2012 transactions.
1. The owner bob paddle investered $250,000 cash into the business in exchange for common stock.
2. Paddle away borrowed $50,000 from the bank.
3. Paddle away paid $1,000 for rent on a retail location
4. Paddle away purchases 1,000 kayaks at $125 each. They paid 1/2 of them with cash that day and will pay for the rest of them at a later date.
5. Paddle away sold 400 of those kayaks for $250 each- 100 kayaks were sold for immediate cash reciept and the rest of the cash will be received at a later date.
6. Paddle away advertised on television for a cost of $500. This will be paid at a later date
7. Paddle Away collected cash of $25,000 from the previous sales transaction
8. Paddle Away paid $10,000 to vendors from the purchase of kayaks in item #4 above.
9. Paddle Away paid $5,000 on its outstanding bank loan.
1. record the journal entries for the following transactions
2. then move those into t-accounts, calculate your account balances, and make sure the total debt=total credit
3. Then use your account balances to create the Balance Sheet, Income Statement, and Statement of Changes in Owners' Equity - in the proper formats.