B E F G H K D 1 Requirement #1: 2 Duning its first month of operation, the Quick Tax Corporation, which specializes in tax preparation 3 completed the following transactions : - 4 5 July 1 Began business by making a deposit in a company bank account of $60,000, in exchange 6 for 6,000 shares of $10 par value common stock 7 8 July 3 Paid the current month's rent, $3,500 9 10 July 5 Paid the premium on a 1-year Insurance policy, $4,200 11 12 July 7 Purchased supplies on account from Little Company, $1,000 13 14 July 10 Paid employee salaries, $3,500 15 16 July 14 Purchased equipment from Lake Company, $10,000 Paid $2,500 down and the balance was 17 placed on account Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1 18 Note: Use accounts payable for the balance due 19 20 July 15 Received cash for preparing tax returns for the first half of July, $8,000 21 22 July 19 Made payment on account to Lake Company, $500 23 24 July 31 Received cash for preparing tax returns for the last half of July, $9,000 25 26 July 31 Declared and paid cash dividends of $600 27 44 J B A E F G H 1 9 Prepare journal entries to record the July transactions in the General Journal below. -0 31 General Journal B2 Date Description(Account Name) Debit Credit 33 1-Jul Cash 60,000 34 common Stock 60,000 35 3-Jul Rent expense 3,500 36 Cash 3,500 37 5-Jul Insurance expense 4,200 38 Prepaid Insurance 4,200 39 Cash 40 7-Jul Supplies 1,000 41 Acconts Payable 1,000 42 10-Jul Salaries Expense 3,500 43 Cash 3,500 44 14-Jul Equipment 45 Cash 46 Acconts Payable 47 15-Jul Cash 48 Tax Preperation Revenue 49 19-Jul Accounts Payable 50 Cash 51 31-Jul Cash 52 Tax Preperation Revenue 53 31-Jul Dividends 54 Cash 55 56 57 58 59 60 61 62 63 64 65 72,200 72,200 Use the following account names for journal entries. Chart of Accounts: Account Title (Normal Balance) Assets Cash (Debit) Prepaid Insurance (Debit) Supplies (Debit) Equipment (Debit) Accumulated Depreciation - Equipment (Credit) Liabilities Accounts Payable (Credit) Income Tax Payable (Credit) Stockholders' Equity Common Stock (Credit) Retained Earnings (Credit) Dividends (Debit) Revenue Tax Preparation Revenue (Credit) Expenses Rent Expense (Debit) Salaries Expense (Debit) Insurance Expense (Debit) Supplies Expense (Debit) Depreciation Expense (Debit) Income Tax Expense (Debit) 1 D Format Painter Forr Clipboard Font Alignment Number 10 1 x fx A B D E F This Sheet will be used for Requirements 2, 5, and 9. 2 3 Requirement #2: 4 5 Post the July journal entries to the following T-accounts and compute ending balances. 6 7 8 Cash (111) Tax Preparation Revenue 9 10 11 12 13 14 15 16 17 18 19 Prepaid Insurance (117) Rent Expense (511) 20 21 22 23 24 25 26 Supplies (119) Salarios Expense (612) 27 28 29 30 31 32 33 Equipment (144) Insurance Expense (513) Instructions Journal Entries General Ledger Trial Balance Adjusting Entries Adjusted Trial Balar A B. Quick Tax Corporation Trial Balance July 31 3 2 0 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 a 0 XV fi D E F H G A B Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired b) The remaining inventory of supplies is $400. c) The estimated depreciation on equipment is $125. 7 2 d) The estimated income taxes are $3,000 3 4 General Journal 5 Date Description (Account Name) Debit Credit 6 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Requirement #5: 31 32 Post the adjusting entries to the General Ledger T-accounts and compute adjuste 33 Just add to the balances that are already listed. Instructions Journal Entries General Ledger Trial Balance Adj B A Requirement #6: Prepare an adjusted trial balance in the space below. Quick Tax Corporation Adjusted Trial Balance July 31 1 3 4. 5 6 7 8 9 0 21 2 23 24 25 26 27 28 29 0 0 G32 K ! B C D F G H Less Accum Dopr Total Assets A 16 Salanes Expense 17 Insurance Expense 18 Supphos Experts 19 Depreciation Expanse 20 Income Tax Expense 21 Total Expenses 22 23 Not Income 24 25 20 27 28 29 30 31 Liabilities Accounts Payable Income Tax Payable Total Los Stockholders' Equity Common Stock Roland Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity July 31 B D 1 Requirement #7: 2 3 Prepare the financial statements for the Quick Tax Corporation as of July 31 in the space below 4 You will only be preparing the income statement, statement of retained earnings, and the balance sheet. 5 The statement of cash flows is a required financial statement, but is not required for this case study 6 7 Quick Tax Corporation Quick Tax Corporation Quick Tax Corporation 8 Income Statement Statement of Refamed Earnings Balance Sheet 9 For the Month Ending July 31 For the Month Ending July 31 10 11 Revenues Retained Earnings, July 1 Assets Cash Add: Net Income 12 Revenue 13 Subtotal Supplies 14 Expenses Loss Dividends Prepaid Insurance 15 Rent Expense Retained Earnings, July 31 Equipment 16 Salaries Expense LOSS Accum Depr 17 Insurance Expense Total Assets 18 Supplies Expense Liabilities 19 Depreciation Exponse 20 Income Tax Expense Accounts Payable 21 Total Expenses Income Tax Payable Total Liabilities 22 Stockholders' Equity 23 Not Income Common Stock 24 Retained Earnings 25 Total Stockholders' Equity 26 Total Liabilities and 27 Stockholders' Equity 28 29 30 1 Requirement #8: 2 3 Prepare the closing entries at July 31 in the General Journal below. 4 5 6 7 General Journal 8 Date Description (Account Name) Debit Credit 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Requirement #9: 27 28 Post the closing entries to the General Ledger T-accounts and compute ending balances. 29 Just add to the adjusted balances already listed. 30 1 Requirement #10: 2 3 Prepare a post-closing trial balance as of July 31 in the space below. 4 5 6 Quick Tax Corporation 7 Post-Closing Trial Balance 8 July 31 9 10 11 12 13 14 15 16 17 18 19 0 0 20 21