Using the information provided in E4-6, prepare Dover Direct Insurance Agency's unadjusted trial balance a t June
Question:
Using the information provided in E4-6, prepare Dover Direct Insurance Agency's unadjusted trial balance a t June 30, 2018.
Data from E4-6.
The Dover Direct Insurance Agency began operations on June 1, 2018. In the month of June, the following transactions occurred:
June 2: Dover Direct's owner invested $80,000 (the par value of the stock) cash and acquired 4,000 shares of common stock.
June 8: Dover Direct purchased $8,000 of office supplies with cash.
June 15: Dover Direct paid employees $8,000 in cash for the biweekly payroll.
June 20: Dover Direct acquired new office furniture for $25,000. The company paid $10,000 in cash rule financed the remainder by issuing a $15,000 note payable to the vendor.
June 22: Dover Direct collected $120,000 in sales revenue for the month, all of which was paid in cash.
Dover uses the following chart of accounts:
Assets
100 Cash
101 Accounts Receivable
102 Office Supplies
121 Furniture
Liabilities
200 Accounts Payable
210 Notes Payable
Stockholders' Equity
300 Common Stock
Revenues
400 Sales Revenue
Expenses
501 Wage Expense
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0134730370
2nd edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella