Question
A. (25 points) Using the chart of accounts which follows, journalize the following transactions: June 1 Marty Max began his law practice by placing $45,000
A. (25 points) Using the chart of accounts which follows, journalize the following transactions:
June
1 Marty Max began his law practice by placing $45,000 cash into a
business checking account, and by also investing office furniture which he already owned, $20,000.
2 Paid $4,500 for three months' rent.
2 Purchased office equipment, $1,700, paying $500 cash, remainder on account.
3 Purchased $800 of office supplies on account.
5 Paid $3,600 premium on a two year insurance policy.
6 Billed a client for services performed, $3,750.
8 Paid for the supplies purchased on June 3.
10 Hired Betty Bright as a secretary, at $12.00 per hour.
12 Received $4,250 from a client for work delivered this date.
15 Received full payment from the client billed on June 6.
17 Paid $900 to repair damaged equipment.
20 Paid $1,200 to place advertisement announcing opening of the practice.
23 Received $1,875 from a client for work to be performed the following month.
24 Paid Betty Bright $960 for two weeks of work.
30 Withdrew $3,000 for personal use.
Chart of Accounts
Cash MM, Capital
Accounts Receivable MM, Withdrawal
Office Supplies Professional Fees
Prepaid Insurance Wages Expense
Prepaid Rent Insurance Expense
Office Furniture Advertising Expense
Office Equipment Repairs Expense
Accounts Payable Rent Expense
Unearned Service Revenue
Problem II (30 points):
The unadjusted trial balance for XYZ Services is presented below:
Cash 18667
Accounts Receivable 4238
Office Supplies 1106
Prepaid Insurance 1260
Land 42000
Building 78000
Acc Deprec - Building 13000
Office Equipment 14665
Acc Deprec - Office Equipment 2850
Accounts Payable 1974
Wages Payable
Unearned Service Fees 2945
Mortgage Payable 63774
DL, Capital 53640
DL, Withdrawals 4300
Service Fees 50548
Wages Expense 23680
Insurance Expense
Supplies Expense
Deprec Exp - Building
Deprec Exp - Office Equipment
Utilities Expense667
Miscellaneous Expense148
188731=188731
Data for the adjustments is as follows:
A.An inventory of supplies shows $358 to be on hand.
B.Calculations reveal $415 of insurance has expired.
C.Additional depreciation on the building is $2,600.
D.Additional depreciation on the office equipment is $950.
E.$1135 of the unearned fees remains to be performed.
F.Services performed, but not yet collected or billed, $1,065.
G.Accrued wages are $560.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started