Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:
Jan. 1 Issued common stock in exchange for $109,000 cash.
2 Purchased inventory on account for $44,000 (the perpetual inventory system is used).
4 Paid an insurance company $3,480 for a one-year insurance policy. Prepaid insurance was debited for the entire amount.
10 Sold merchandise on account for $12,900. The cost of the merchandise was $7,900.
15 Borrowed $39,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.
20 Paid employees $6,900 salaries for the first half of the month.
22 Sold merchandise for $10,900 cash. The cost of the merchandise was $6,900.
24 Paid $15,900 to suppliers for the merchandise purchased on January 2.
26 Collected $6,450 on account from customers.
28 Paid $1,000 to the local utility company for January gas and electricity.
30 Paid $4,900 rent for the building. $2,450 was for January rent, and $2,450 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts.
Required:
1. Prepare general journal entries to record each transaction.
2. Post the transactions into the appropriate T-accounts.
3. Prepare an unadjusted trial balance as of January 30, 2021.