Royal Brisbane International College Course: Financial Accounting (August 2016) Individual Assignment 1
Question 1 In March 2016, the stockholder organized a corporation to provide package delivery services. The company, called TD Ltd, began operations immediately. Transactions during the month of March were as follows:
Mar 2 The corporation issued 40,000 shares of capital stock to stockholder in exchange for $80,000 cash Mar 4 Purchased a truck for $45,000. Make a $15,000 cash down payment and issued a note payable for the remaining balance Mar 5 Paid Sloan properties (property holder) $2,500 to rent office space for the month Mar 9 Billed customers $11,300 for services for the first half of March Mar 15 Paid $7,100 in salaries earned by employees during the first half of March Mar 19 Paid Bill's Auto (Automobile repair company) $900 for maintenance and repair services on the company truck Mar 20 Collected $3,800 of the amount billed to customers on March 9 Mar 28 Billed customers $14,400 for services performed during the second half of the month Mar 30 Paid $7,500 in salaries earned by employees during the second half of the month. Mar 30 Received an $830 bill from SY Petroleum for the fuel purchased in March. The entire amount is due by April 15. Mar 30 Declared a $1,200 dividend payable on April 30.
Required a. Prepare journal entries for each transaction (23 marks) b. Post each transaction to the appropriate ledger accounts (use T— account format) (18.5 marks) c. Prepare trial balance dated March 31,2016 (6.5 marks) (Total: 48 marks)

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