Halogen Laminated Products Company began business on January 1, 2016. During January, the following transactions occurred:
Jan. 1 Issued common stock in exchange for $100,000 cash.2 Purchased inventory on account for $35,000 (the perpetual inventory system is used).
4 Paid an insurance company $2,400 for a one-year insurance policy.10 Sold merchandise on account for $12,000. The cost of the merchandise was $7,000.15 Borrowed $30,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.
20 Paid employees $6,000 salaries and wages for the first half of the month.22 Sold merchandise for $10,000 cash. The cost of the merchandise was $6,000.24 Paid $15,000 to suppliers for the merchandise purchased on January 2.26 Collected $6,000 on account from customers.28 Paid $1,000 to the local utility company for January gas and electricity.30 Paid $4,000 rent for the building. $2,000 was for January rent, and $2,000 for February rent.
Prepare general journal entries to record each transaction. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
Post the transactions into the appropriate T-accounts. (Enter the date of the transaction in the column next to the amount.)
Prepare an unadjusted trial balance as of January 30, 2016.