(Solution) - Georgia Supply Corporation a merchandising firm prepared the following trial -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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Georgia Supply Corporation, a merchandising firm, prepared the following trial balance as of October 1:

Georgia Supply engaged in the following transactions during October 2013. The company records inventory using the perpetual system.
Oct. 1 Sold merchandise on account to the Tracker Corporation for $12,000; terms 2/10, n/30, FOB shipping point. Tracker paid $350 freight on the goods. The merchandise cost $6,850.
5 Purchased inventory costing $10,250 on account; terms n/30.
7 Received payment from Tracker for goods shipped October 1.
Oct. 15 The payroll paid for the first half of October was $22,000. (Ignore payroll taxes.)
18 Purchased a machine for $8,600 cash.
22 Declared a dividend of $0.45 per share on 45,000 shares of common stock outstanding.
27 Purchased building and land for $62,500 in cash and a $112,500 mortgage payable, due in 30 years. The land was appraised at $75,000 and the building at $150,000.
1. Prepare T-accounts for all items in the October 1 trial balance and enter the initial balances.
2. Record the October transactions directly to the T-accounts.
3. Prepare a new trial balance as of the end of October.