The Precision Computer Centre created its chart of accounts as follows: You will use this chart of
Question:
The Precision Computer Centre created its chart of accounts as follows:
The following problem continues from Chapter 1. The balances as of May 31 have been brought forward in your Study Guide with Working Papers on pages 2-24 to 2-25. Additional transactions in June were:
(k) Received the phone bill for the month of May, $155
(l) Paid $150 (cheque No. 205) for insurance for the month
(m) Paid $200 (cheque No. 206) of the amount due from transaction (d) in Chapter 1
(n) Paid advertising expense for the month, $1,400 (cheque No. 207)
(o) Billed a client (Jeannine Sparks) for services rendered, $850
(p) Collected $900 for services rendered—a cash sale
(q) Paid the electric bill in full for the month of May (cheque No. 208—transaction (h), Chapter 1), $85
(r) Paid cash (cheque No. 209) for $50 in stamps (s) Purchased $200 worth of supplies from Computer Connection on account
Assignment
1. Set up T accounts in a ledger.
2. Record the transactions (k) through (s) in the appropriate T accounts.
3. Foot the T accounts where appropriate.
4. Prepare a trial balance at the end of June 2013.
5. From the trial balance, prepare an income statement, a statement of owner’s equity, and a balance sheet for the two months ending June 30, 2013.
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Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
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