At the beginning of June 2020, Brett Wilson created a moving company called Frog Box Company. The

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At the beginning of June 2020, Brett Wilson created a moving company called Frog Box Company. The company had the following transactions during July, its second month of operations:

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Required

1. Prepare journal entries to record the transactions. Use page 1 for the journal.

2. Set up the following general ledger accounts (use the balance column format or T-accounts), entering the balances brought forward from June 30, 2020: Cash (101) $75,000; Accounts Receivable (106) $950; Prepaid Insurance (128) $275; Trucks (153) $20,800; Office Equipment (163) $1,200; Building (173) $-0-; Land (183) $-0-; Accounts Payable (201) $725; Unearned Revenue (233) $-0-; Long-Term Notes Payable (251) $7,000; Brett Wilson, Capital (301) $83,825; Brett Wilson, Withdrawals (302) $600; Revenue (401) $8,400; Wages Expense (623) $780; Truck Rental Expense (645) $230; Advertising Expense (655) $75; and Repairs Expense (684) $40.

3. Post the entries to the general ledger accounts and enter the balance after each posting.

4. Prepare a trial balance as of the end of the month.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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