Question
On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Oriole Ltd.
On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Oriole Ltd.
| Accounts payable | $2,440 | ||
| Accounts receivable | 4,400 | ||
| Accumulated depreciationequipment | 1,880 | ||
| Cash | 5,880 | ||
| Common shares | 11,600 | ||
| Deferred revenue | 1,140 | ||
| Equipment | 9,600 | ||
| Interest receivable | 20 | ||
| Note receivable, due October 31, 2021 | 4,000 | ||
| Retained earnings | 6,670 | ||
| Salaries payable | 1,290 | ||
| Supplies | 1,120 |
During August, the following summary transactions were completed.
| Aug. 1 | Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. (Hint: Use the Prepaid Advertising account.) | ||
| 3 | Paid August rent $400. (Hint: Use the Prepaid Rent account.) | ||
| 6 | Received $3,340 cash from customers in payment of accounts. | ||
| 10 | Paid $2,820 for salaries due employees, of which $1,530 is for August and $1,290 is for July salaries payable. | ||
| 13 | Received $3,440 cash for services performed in August. | ||
| 15 | Purchased additional equipment on account $1,830. | ||
| 17 | Paid creditors $1,830 of accounts payable due. | ||
| 22 | Purchased supplies on account $740. | ||
| 24 | Paid salaries $2,960. | ||
| 27 | Performed services worth $5,140 on account and billed customers. | ||
| 29 | Received $820 from customers for services to be provided in the future. | ||
| 31 | Declared and paid a $490 dividend. |
Prepare T accounts, enter any opening balances, post the general journal entries and calculate end balances. (Post entries in the order of journal entries presented in the previous part. If the ending balance is 0 select Bal for the date and enter 0 for the normal balance for that account.)
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
