John’s House Painting Company has the following transactions for the year 1. Dec

ID: 2452227 • Letter: J

Question

John’s House Painting Company has the following transactions for the year

1. December 1 – Issued capital stock for $100,000 to start a house painting business.

2. December 1 - Paid gas expense $500.

3. December 1 - Paid one year insurance premium costing $3,600.

4. December 1 - Received $3,000 for a job to paint a house in January next year.

5. December 1 - Painted three houses totaling $15,000 and billed customers.

6. December 1 - Purchased equipment costing $8,400 on credit.

7. December 12 - Purchased supplies costing $900 on credit.

8. December 23 - Painted three rooms and billed customers $1,500.

9. December 31 - Paid for equipment purchased in #6.

10. December 28 - Received $2,000 for houses painted in #5.

11. December 31 - Paid a $2,000 dividend.

Required: Post the above transactions to T Accounts.

The given transactions should be posted to T-accounts as follows:

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