Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

J K H Requirement #1: During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July

image text in transcribed
image text in transcribed
image text in transcribed
J K H Requirement #1: 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 $60,000, in exchange for 6,000 shares of $10 par value common stock July 3 Paid the current month's rent, $3,500 July 5 Paid the premium on a 1-year insurance policy. $4,200 July 7 Purchased supplies on account from Little Company. $1.000 July 10 July 14 Paid employee salanes $3.500 Purchased equipment from Lake Company $10.000 Paid $2 500 down and the balance was placed on account Payments will be $500.00 per month until the equipment is paid The first payment is due 8/1 Note. Use accounts payable for the balance due July 15 Received cash for preparing tax retums for the first half of July $8.000 2 July 19 Made payment on account to Lake Company $500 3 July 31 5 Received cash for preparing tax returns for the last half of July 59.000 Declared and paid cash dividends of S600 July 31 Prepare journal entries to record the July transactions in the General Journal belo General Journal Description(Account Name) Debit Credit 2 Date 3 4 5 6 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Preliminary Audit Results Montanas State Employee Compensation 1990

Authors: Waters Consulting Group, Montana. State Employee Compensation Committee

1st Edition

1378152700, 978-1378152706

More Books

Students also viewed these Accounting questions