Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Neveranerror, Inc. was organized on June 1, 2019 by a group of accountants to provide accounting and tax services to small busine sses. The following

image text in transcribed
image text in transcribed
image text in transcribed
Neveranerror, Inc. was organized on June 1, 2019 by a group of accountants to provide accounting and tax services to small busine sses. The following transactions occurred during June, its first month of operations: (1) On June 1, Neveranerror received contributions to taling $50,000 from the owners of the business in exchange for shares of stock. (2) On June 5, Neveranerror purchased a computer syst em for $12,000. The agreement with the vendor requires a down payment of $2,500 with the remaining balance due in 60 days. (3) On June 15, Neveranerror sent bills to clients to taling $12,350 for services rendered during the first two weeks of une. (4) On June 17. Neveranerror paid $900 to rent office furniture for three months (5 on June 2011 Neveranerrol received 80% of the amou (6) On June 28, Neveranerror received and paid gas, e lectric, and water bills totaling $2,700. (7) On June 29, Neveranerror received the landlord's bill for $2,200 for the June rent on the office space that Neveranern or leases. The bill is due by the 10th of the following month. (8) On June 30, Neveranerror paid salaries and wages for June amounting to $5,940. The journal entry made by Neveranerror to record the une 29 transaction would be: Prepaid rent Cash... ... 2,200 ... 2.200 ... 2.200 Prepaid rent. Rent expense 2,200 Rent expense Rent pay 2,200 2.200 Rent expense 2200 PIDO0 The journal entry made by Neveranerror to record the 3 une 29 transaction would be: O Prepaid rent. Cash 2,200 .... 2,200 O Prepaid rent ..... Rent expense ... 2,200 2,200 O Rent expense ........... ... 2,200 Rent payable 2,200 ... 2,200 Rent expense Prepaid rent. 2,200 Rent payable .......... 2.200 Rent expense 2,200 ..... Rent expense Cash 2.200 2,200 Cash... Rent payable 2,200 . 2.200 none of the above journal entries are correct

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

Occupational Fraud And Abuse

Authors: Joseph T. Wells

1st Edition

1889277088, 978-1889277080

More Books

Students also viewed these Accounting questions

Question

6. Conclude with the same strength as in the introduction

Answered: 1 week ago

Question

7. Prepare an effective outline

Answered: 1 week ago