MARSHALL COMPANY On April 1, Ralph Marshall opened Marshall Company. The company provides services to a variety of clients. The company was organized as a corporation and has a monthly accounting period. The following transactions occurred during April. Apr. 1 p. 1 Apr. 1 Marshall invested $20,000 cash in the company in exchange for its common stock The company paid $1,000 cash to rent office space for April. The company paid $1,440 cash for the premium on a 12-month insurance policy. Coverage begins on April 1 The company performed services for a client and received $2,000 cash The company purchased $700 of supplies on account The company paid $500 cash for salary earned by an employee. The company performed $1,900 in services for a client. The client must pay within 30 days. The company paid $500 cash for salary earned by an employee. The company paid $200 cash for this month's utility bill. The company paid $800 cash in dividends. Apr. 4 Apr. 7 Apr. 14 Apr. 24 Apr. 28 Apr. 30 Apr. 30 The company's chart of accounts follows: CHART OF ACCOUNTS REVENUES Service Revenue ASSETS Cash Accounts Receivable EXPENSES Supplies Prepaid Insurance Salary Expense Rent Expense Supplies Expense Utilities Expense LIABILITIES Accounts Payable Salary Payables Insurance Expense CLEARING Income Summary EQUITY Common Stock Retained Earnings DIVIDENDS Dividends Adjustment Data 1. As of April 30, the company has incurred $100 of unpaid and unrecorded salary. 2. As of April 30, $120 of insurance coverage has expired. 3. As of April 30, the company has $570 of supplies remaining. Credit Date Debit Account Titles Credit Debit Date Account Titles Service Revenue Cash Salary Expense Accounts Receivable Supplies Rent Expense Prepaid Insurance Supplies Expense Accounts Payable Salary Payable Utilities Expense Common Stock Insurance Expense Retained Earnings Income Summary Dividends The blank, shaded spaces on this page indicate where something should be written. MARSHALL COMPANY Income Statement For Month Ended April 30 Revenues Expenses Total expenses Net income MARSHALL COMPANY Retalned Earnings Statement For Month Ended April 30 Retained earnings, April 1 +Net income Dividends Retained earnings, April 30 MARSHALL COMPANY Balance Sheet April 30 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity MARSHALL COMPANY Post-Closing Trlal Balance April 30 Credit Debit Cash Accounts Receivable Supplies Prepaid Insurance Accounts Payable Salary Payable Common Stock Retained Earnings Totals MARSHALL COMPANY Unadjusted Trial Balance April 30 Credit Debit Cash Accounts Receivable Supplies Prepaid Insurance Accounts Payable Salary Payable Common Stock Retained Earnings Dividends Service Revenue Salary Expense Rent Expense Supplies Expense Utilities Expense Insurance Expense Totals MARSHALL COMPANY Adjusted Trial Balance April 30 Debit Credit Cash Accounts Receivable Supplies Prepaid Insurance Accounts Payable Salary Payable Common Stock Retained Earnings Dividends Service Revenue Salary Expense Rent Expense Supplies Expense Utilities Expense Insurance Expense Totals
