During the first month of operations (June 2020), Schulich Graphics Service Inc. completed the following selected transactions:
Question:
During the first month of operations (June 2020), Schulich Graphics Service Inc. completed the following selected transactions:
a. Began the business with an investment of \(\$ 20,000\) cash and a building valued at \(\$ 60,000\). The corporation issued commion shares to the shareholders in exchange for these investments.
b. Borrowed \(\$ 90,000\) from the bank, and signed a note payable.
c. Paid \(\$ 35,000\) for computer equipment.
d. Purchased office supplies on account for \(\$ 1,300\).
e. Performed'computer graphic service on account for a client, \(\$ 2,500\).
f. Received \(\$ 1,200\) cash on account.
g. Paid \(\$ 800\) of the account payable created in transaction (d).
h. Received a \(\$ 500\) bill for advertising expense that will be paid in the near future, i. Performed service for clients, and received \(\$ 1,100\) in cash.
j. Paid employees' salaries totalling \(\$ 2,200\)
k. Paid the following cash expenses: rent, \(\$ 700\); utilities, \(\$ 400\).
{Requirement}
Prepare the trial balance of Schulich Graphics Service Inc. at June 30, 2020.
Step by Step Answer:
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin