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Urgent Help In Accounting

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January 1, 2008 Timber Company incorporated in the State of Pennsylvania. Initially it issued stock to three stockholders, Bob, Jim, and Frank. Each paid $50,000 (50,000 shares-- $.25 par value per share) for the stock. The Company¡¯s Articles of Incorporation indicate that it will function as a Great Value Hardware Franchise.

The following transactions occurred during the month of January:
1. On January 1, 2008 purchased hardware inventory for $95,000 and miscellaneous supplies for $30,000. Paid $5,000 down and with the balance to be paid to Great Value Holding Company on a monthly basis, of $10,000, due the first of each month starting in February.
2. Purchased Furniture and Fixtures on January 1, 2008 at a cost of $50,000( $20,000 in cash and the balance due on January 2, 2009 @ 12% interest)
3. Hired 3 employees at $150.00 (each) a week On January 1, 2008. On January 4, 11, 18, and 25 paid employees for entire week ($450.00). Pay day is each Friday. For the week ended January 4, 2008 payroll is $360.
4. Total sales, for the period ended January 31, 2008, are $18,000, of which $11,000 is cash. The balance is on Timber credit cards.
5. Paid utility water bill, for three months, of $600 ( January-March) on January 19, 2008.
6. Received phone bill on January 24, 2008, for the month of January The bill is $625. Bill is due and will be paid on February 5, 2008.
7. Received $6,000 on accounts receivables on January 26, 2008. From industry information Timber anticipates that 8% of its credit sales will be uncollectible
8. On January 27, 2008 the company is notified that ABC customer went into bankruptcy and therefore will not pay its receivable of $340.
9. Furniture and Fixtures are determine to have a life of 10 years with no residual value
10. Timber borrowed $60,000 on January 26, 2008 from Wells Bank to expand the store. Construction is to start in February 2008. The note carries an interest rate of 13% and is payable in full on January 31, 2009. Timber actually received $52,200 in cash. The month of January is subject to a full month of interest.
11. Timber paid a Franchise Fee of $75,000 on January 27, 2008 to Great Value Hardware. The fee is amortizable over 25 years, after which Timber will own all future rights to the subject franchise location.
12. At January 31, 2008 inventory hardware is $87,000 and supplies on hand are $27,500.
13. The Board of Directors declares a dividend on January 30, 2008 of $3,000 payable to stockholders of record on January 30, 2008. The dividend will be paid on February 8, 2008.
14. On January 1, 2008 Timber signed a lease agreement to lease its headquarters building for 5-years, at a monthly rental of $1,500 per month, due the first day of each month. Timber paid January¡¯s rent on January 1, 2008.
15. On January 3, 2008 purchased JCY stock for $20,000 to be held as a Trading Security. The stock has a value of $35,000 on January 31, 2008.

Required for the Month of January:
1. Prepare required journal entries and post to ledger T accounts for Timber
2. Prepare a 10 column worksheet for Timber

I did the journal entries, but is having a hard time figuring out how many T-accounts are there in total. Also, having trouble with the worksheet due to the unadjusting Trial Balance is not balance for the Debit and Credit. Help please?

  • Urgent Help In Accounting -

    January 1, 2008 Timber Co issued stock to three stockholders, Bob, Jim, and Frank. Each paid $50,000 (50,000 shares-- $.25 par value per share) for the stock
    Dr Cash $150,000
    Cr Common stock $37,500
    Cr Add'l paid up in excess of par $112,500

    1. On January 1, 2008 purchased hardware inventory for $95,000 and miscellaneous supplies for $30,000. Paid $5,000 down and with the balance to be paid to Great Value Holding Company on a monthly basis, of $10,000, due the first of each month starting in Feb
    Dr Merchandize inventory $95,000
    Dr Supplies $30,000
    Cr Cash $5,000
    Cr Payable to GVHC $120,000

    2. Purchased Furniture and Fixtures on January 1, 2008 at a cost of $50,000( $20,000 in cash and the balance due on January 2, 2009 @ 12% interest)
    Dr F&F $50,000
    Cr Cash $20,000
    Cr Note payable $30,000 ?

    Dr Interest exp. $300
    Cr Interest payable $300

    3. Hired 3 employees at $150.00 (each) a week On January 1, 2008. On January 4, 11, 18, and 25 paid employees for entire week ($450.00). Pay day is each Friday. For the week ended January 4, 2008 payroll is $360
    Dr Wages expense $1,710
    Cr Cash $1,710

    Dr Wages exp. $360
    Cr Wages payable $360
    (for Jan 28, 29, 30 & 31)

    4. Total sales, for the period ended January 31, 2008, are $18,000, of which $11,000 is cash. The balance is on Timber credit cards
    Dr Cash $11,000
    Dr Accounts receivable $7,000
    Cr Sales $18,000

    5. Paid utility water bill, for three months, of $600 ( January-March) on January 19, 2008
    Dr Utilities expense $200?
    Dr Prepaid utilities $400
    Cr Cash $600

    6. Received phone bill on January 24, 2008, for the month of January The bill is $625. Bill is due and will be paid on February 5, 2008
    Dr Telephone expense $625
    Cr Tel. payable $625

    7. Received $6,000 on accounts receivables on January 26, 2008. From industry information Timber anticipates that 8% of its credit sales will be uncollectible
    Dr Cash $6,000
    Cr AR $6,000

    Dr Doubtful debts exp. $560
    Cr Allowance for doubtful debts $560

    8. On January 27, 2008 the company is notified that ABC customer went into bankruptcy and therefore will not pay its receivable of $340
    Dr Allowance for d.d. $340
    Cr AR (ABC) $340

    9. Furniture and Fixtures are determined to have a life of 10 years with no residual value
    Dr Depreciation $416.67
    Cr Accum. depn. $416.67

    10. Timber borrowed $60,000 on January 26, 2008 from Wells Bank to expand the store. Construction is to start in February 2008. The note carries an interest rate of 13% and is payable in full on January 31, 2009. Timber actually received $52,200 in cash. The month of January is subject to a full month of interest
    Dr Cash $52,200
    Dr Interest exp. $650
    Dr Prepaid interest $7,150
    Cr Loan payable $60,000

    11. Timber paid a Franchise Fee of $75,000 on January 27, 2008 to Great Value Hardware. The fee is amortizable over 25 years, after which Timber will own all future rights to the subject franchise location
    Dr Franchise Fee $75,000
    Cr Cash $75,000

    12. At January 31, 2008 inventory hardware is $87,000 and supplies on hand are $27,500
    Dr COGS $8,000
    Cr Merchandize inventory $8,000

    Dr COGS $7,300
    Cr Supplies $7,300

    13. The Board of Directors declares a dividend on January 30, 2008 of $3,000 payable to stockholders of record on January 30, 2008. The dividend will be paid on February 8, 2008
    Dr Dividend $3,000
    Cr Dividend payable $3,000

    14. On January 1, 2008 Timber signed a lease agreement to lease its headquarters building for 5-years, at a monthly rental of $1,500 per month, due the first day of each month. Timber paid January¡¯s rent on January 1, 2008

    Dr Prepaid Rent $1,500
    Cr Cash $1,500

    Dr Rent exp. $1,500
    Cr Prepaid rent $1,500

    15. On January 3, 2008 purchased JCY stock for $20,000 to be held as a Trading Security. The stock has a value of $35,000 on January 31, 2008

    Dr Trading security $20,000
    Cr Cash $20,000

    Dr Trading security $15,000
    Cr Gain on revaluation of Trading Security $15,000

  • Urgent Help In Accounting -

    That is the Journal Entries I did. I need help with the T-accounts.

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