5.TING Company began operations on December 1. The company had the following tra

Question

5.TING Company began operations on December 1. The company had the following transactions during December. Record these transactions in proper form, including explanations. If an entry is not required, please write "No Entry."

a. Issued 50,000 shares of no par and received $350,000 cash.

b. Extended an offer of employment to a sales manager who will begin work on January 1.

c. Purchased machinery on account for $450,000 from Tampa Company.

d. Purchased a two-year insurance policy for $4,800. This policy will become effective on January 1.

e. Paid $2,500 in office rent for the month of January.

f. Purchased office furniture for $50,000 with a 10% down payment and a six month note payable for the balance.

g. Paid wages of $15,000 to employees.

h. Provided services to customers for $85,000.

i. Paid $200,000 to Tampa Company on account.

j. Received payment in full for services rendered. k. Paid a telephone bill for $525.

Explanation / Answer

Transaction List Credit Debit Comment Issued 50,000 shares of no par 350000 Extension of offer for sales manager No Entry Machinery purchased 450000 Insurance policy purchase No Entry It is for January transaction Office rent 2500 Office furniture down payment 5000 10/100 of 55000 Employee wage 15000 Customer Service 85000 Paid Tampa Company 200000 Payment in full for srvice No Entry Telephone bill 525

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