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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.

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