B C D Requirement #10: 3 Prepare a post-closing trial balance as of July 31 in the space below. Quick Tax Corporation Post-Closing Trial Balance July 31 CAO Date Debit Credit 31 Jul General Joumal Description (Account Name) Tax preparation revenue Income Summary 14750 14750 31-Jul 8825 Income summary Rent expense Salaries expense Insurance expense Supplies expense Depreciation expense Income Tax Expense 2500 2800 300 400 125 2700 31-Jull 5925 Income Summary Retained Eamings 5925 31-Jul Retained Eamings Dividends 450 45nl 3 epare the financial statements for the Quick Tax Corporation as of July 31 in the space below. 4 u will only be preparing the income statement, statement of retained earnings, and the balance sheet 5 statement of cash flows is a required financial statement, but is not required for this case study. Quick Tax Corporation Income Statement For the Month Ending July 31 Quick Tax Corporation Statement of Retained Eamings For the Month Ending July 31 Quick Tax Corporation Balance Sheet July 31 9 10 Assets 11 yvenues 12 yenue $ 14,750 Retained Eamings July 1 Add: Net Income Subtotal Less: Dividends Retained Eamings, July 31 5.925 5.925 4,340 300 3.300 9.500 -125 $5,475 Supplies Prepaid Insurance Equipment Less Accum. Depr. Total Assets 2.500 2,800 56.375 58 375 300 14 penses: 15 st Expense 16 lanes Expense 17 surance Expense 18 apples Expense 19 preciation Expense 20 come Tax Expense 21 Total Expenses 400 2,700 800 2.700 10.900 it Income Liabilities Accounts Payable Income Tax Payable Total Labs Stockholders' Equity Common Stock Retained Eamings Total Stockholden' Equity Total Liabilities and Stockholders' Equity 40.000 Requirement #1: During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. 3 5 July 1 Began business by making a deposit in a company bank account of $40,000, In exchange for 4,000 shares of $10 par value common stock. 8 July 3 Paid the current month's rent, $2,500 10 July 5 Paid the premium on a 1-year insurance policy. $3,600 12 July 7 Purchased supplies on account from Little Company, $700. 14 July 10 Paid employee salaries, $2,800 16 July 14 Purchased equipment from Lake Company. $9.500. Paid $1.500 down and the balance was placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1 Note: Use accounts payable for the balance due. 20 July 15 Received cash for preparing tax retums for the first half of July, $6,500 22 July 19 Made payment on account to Lake Company, $500. 24 July 31 Received cash for preparing tax retums for the last half of July, $8,250 26 July 31 Declared and paid cash dividends of $450. Credit 32 Date 33 July 1 34 General Joumal Description (Account Name) Debit Cash 40,000 Common Stock 40,000 35 36 July 3 2,500 Rent Expense Cash 2,500 39 July 5 Prepaid Insurance Cash 3,600 3,600 42 July 7 700 Supplies Accounts Payable 700 45 July 10 Salaries Expense Cash 2,800 2,800 48 July 14 9,500 Equipment Cash Accounts Payable 1,500 8,000 mm 52 | July 15 Cash Tax Preparation Revenue 6,500 6,500 55 July 19 Accounts Payable Cash 500 500 58 July 19 8.250 8,250 60 July 31 Accounts Payable Cash Cash Tax Preparation Revenue Dividends Cash 450 62 July 31 450 74,80074,800 67 Note: Remember that debits must equal credits Al of your joumal entries should balance 0