Can anyone help me? I don't know if I have to put an adjustment entry for this.

These are all the adjustments needed:

Additional Information: a. Merchandise inventory, Dec.31 - 200,000 b. Inventory of office supplies as of Dec. 31 - 2000 c. Accrued Salaries as of Dec. 31 - 9000 d. Depreciation of Equipment - 10% per year e. Expired insurance - 10,000 f. Income tax is 35% of income before tax g. Transactions with shareholders during the year as as follows: - Issued 1000 shares of ordinary shares of 25 per share - Declared and distributed dividends of 80,000 during the year.

What I'm asking is this:

I already made adjustments from A to F but how about letter G? Do I have to make one for it? Thanks. :) I accept a yes or no for an answer.

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Yes: If you got $25,000 for the issuance of the stock it needs to be properly recorded.

If you paid out $80,000 in dividends, it needs to be properly recorded

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Paul Thomas, CPA
www.paulthomascpa.com
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