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Question: The following events occurred during the month of January for McLain Company. McLain purchases inventory costing $1,800 on account. McLain...
Question: The following events occurred during the month of January for McLain Company.
a. McLain purchases inventory costing $1,800 on account.
b. McLain sells 240 units for $20 each. McLain collects cash for 200 of these units. These specific units cost McLain $8 each to purchase.
c. McLain collects $500 in cash on its accounts receivable.
d. McLain takes out a loan for $400.
e. McLain pays out $350 cash in dividends.
f. McLain receives a contribution of $600 in cash from its owners in exchange for capital stock shares.
g. McLain purchased a new piece of equipment. The new equipment cost $1,000 and was paid for in cash.
h. McLain pays $500 of its accounts payable.
i. McLain incurs $500 in salaries expense, but will not pay workers until next month.
j. McLain incurs $300 in rent expense and pays it in cash.
k. McLain prepays $200 in cash for insurance.
l. Taxes, paid in cash, are $110.
Design a trial balance for January.