Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assignment: Recording Business Transactions Simons AC Services opens for business and completes these transactions in June of the current year. June Instructions 1 John
Assignment: Recording Business Transactions Simons AC Services opens for business and completes these transactions in June of the current year. June Instructions 1 John Simons, the owner, invests $39,000 cash along with office equipment valued at $15,000 in the company as company capital. 2 The company prepaid $9,000 cash for 12 months' rent for office space. 4 The company made credit purchases for $8,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. 8 The company completed work for a client and immediately received $2,380 cash. 12 The company completed a $15,400 project for a client, who must pay within 30 days. 13 The company paid $10,400 cash to settle the payable created on the 4th. 19 The company paid $1,900 cash for the premium on an 18-month insurance policy. 22 The company received $7,700 cash as partial payment for the work completed on the 12th. 24 The company completed work for another client for $2,300 on credit. 28 The company paid John Simons $5,300 cash recorded as an owner withdrawal. 29 The company purchased $550 of additional office supplies on credit. 30 The company paid $960 cash for this month's utility bill. 1. Prepare general journal entries to record these transactions using the accounts listed in Step 2. 2. Open the following ledger accounts-their account numbers are in parentheses: Cash (101); Accounts Receivable (105); Office Supplies (124); Prepaid Insurance (130); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); John Simons, Capital (307); John Simons, Withdrawals (319); Service Fees Earned (401); and Utilities Expense (690). 3. Post journal entries from Step 1 to the ledger accounts and enter the balance after each posting. 4. Prepare a trial balance as of the end of June.
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