During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions.

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.

July 3 Paid the current month's rent, $2,500

July 5 Paid the premium on a 1-year insurance policy, $3,600

July 7 Purchased supplies on account from Little Company, $700.

July 10 Paid employee salaries, $2,800

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.

July 15 Received cash for preparing tax returns for the first half of July, $6,500

July 19 Made payment on account to Lake Company, $500.

July 31 Received cash forpreparing tax returns for the last half of July, $8,250

July 31 Declared and paid cash dividends of $450.

Show an adjusted trial balance in the space below.

Prepare the financial statements for the Quick Tax Corporation as of July 31 in the space below.

You will only be preparing the income statement, statement of retained earnings, and the balance sheet.

The statement of cash flows is a required financial statement, but is not required for this case study.

Quick Tax Corporation Quick Tax Corporation Quick Tax Corporation Income Statement Statement of Retained Earnings Balance Sheet For the Month Ending July 31 For the Month Ending July 31 July 31

Revenues: Retained Earnings, July 1 Assets: Revenue Add: Net Income Cash Subtotal Supplies Expenses: Less: Dividends Prepaid Insurance Rent Expense Retained Earnings, July 31 Equipment Salaries Expense Less: Accum. Depr. Insurance Expense Total Assets Supplies Expense Depreciation Expense Liabilities: Income Tax Expense Accounts Payable Total Expenses Income Tax Payable Total Liabilities Net Income Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity

Prepare the closing entries at July 31 in the General Journal below.

Post the closing entries to the General Ledger T-accounts and compute ending balances.

Just add to the adjusted balances already listed.

Show a post-closing trial balance as of July 31 in the space below.

Quick Tax Corporation Post-Closing Trial Balance July 31 0 0