Recod adjustments and prepare financial statements (lo 1,2,3,4).

 

Transactions for Pops Company for 2011 were as follows:

 

a. The owners started the business as a corporation by contributing $3,000 cash in exchange for common stock.

b. The company purchased office equipment for $8,000 cash and land for $15,000 cash

c. The company earned a total of $22,000 of revenue of which $16,000 was collected in cash.

d. The company purchased $890 worth of supplies for cash

e. The company paid  $6,000 in cash for other opearating expenses

f. At the end of the year, the company owed employees $2,480 for work that the employees had done in 2011. The next payday, however is not until January 4, 2012

g. Only $175 worth of supplies was left at the end of the year.

The office equipment was purchased on January 1 and is expected to last for 8 years ( straightline depreciation no salvage value)