Question - Gold Inc. had the following information for their first month of operations (March 2009):
1. Stockholders invested an additional $36,000 cash in the business.
2. Purchased land costing $18,000 for cash.
3. Purchased equipment costing $9,000 for $4,500 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $3,000 for a one-year insurance policy.
6. Received $2,000 cash for services performed.
7. Performed services of $4,000 on account.
8. Paid wages to employees for $2,500.
9. Paid dividends to stockholders of $400.
10. Paid $300 for March rent.
Instructions -
1. Record each transaction using the spreadsheet format.
2. Prepare an income statement for the month of March.
3. Prepare journal entries for the following transactions above: 1, 4, 6 & 9.