Lauren Kim-Bae is a licensed incorporated CPA. During the first month of operations of the business, the
Question:
Lauren Kim-Bae is a licensed incorporated CPA. During the first month of operations of the business, the following events and transactions occurred.. LO5 May 1 Invested $39,000 cash in exchange for common stock.
2 Hired a secretary-receptionist at a salary of $1,800 per month.
3 Purchased $900 of supplies on account from Frost Supply Company.
7 Paid office rent of $1,200 for the month.
11 Completed a tax assignment and billed client $1,700 for services rendered.
12 Received $5,000 advance on a management consulting engagement.
17 Received cash of $1,500 for services completed for Mutter Company.
31 Paid secretary-receptionist $1,800 salary for the month.
31 Paid 40% of balance due Frost Supply Company.
The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on May 31, 2004.
Step by Step Answer:
Hospitality Financial Accounting
ISBN: 9780471270553
1st Edition
Authors: Jerry J Weygandt, Donald E Kieso, Paul D Kimmel, Agnes L DeFranco