Transactions during the period 1 December 2015 to 30 November 2016 are given below for ABC Construction.
|
(1) Total income (fees) from construction contracts
|
$400,000
|
|
(2) Material inventory purchased on account
|
80,000
|
|
(3) Total office rent paid
|
20,000
|
|
(4) Salaries paid to engineers
|
90,000
|
|
(5) Accounts receivable collected
|
60,000
|
|
(6) Account payable paid
|
30,000
|
|
(7) Subcontractor accounts paid
|
70,000
|
|
(8) Bidding expenses
|
20,000
|
|
(9) Building depreciation
|
40,000
|
|
(10) Construction equipment depreciation
|
30,000
|
Using the transactions presented in Appendix B as a guide:
§ Journalize all of the above transactions.
§ Post journal entries to appropriate accounts.
§ Develop the Income Statement for period 1 December 2015 to 30 November 2016.
§ Develop the Balance Sheet for ABC Construction as of 30 November2016.