Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Vaughn Ltd.
On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Vaughn Ltd.
During August, the following summary transactions were completed.
Accounts payable | $2,320 | ||
Accounts receivable | 3,960 | ||
Accumulated depreciationequipment | 1,960 | ||
Cash | 6,010 | ||
Common shares | 13,000 | ||
Deferred revenue | 1,320 | ||
Equipment | 9,500 | ||
Interest receivable | 19 | ||
Note receivable, due October 31, 2021 | 3,800 | ||
Retained earnings | 4,179 | ||
Salaries payable | 1,550 | ||
Supplies | 1,040 |
During August, the following summary transactions were completed.
Aug. 1 | Paid $410 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 $390. (Hint: Use the Prepaid Rent account.) | ||
6 | Received $3,310 cash from customers in payment of accounts. | ||
10 | Paid $3,050 for salaries due employees, of which $1,500 is for August and $1,550 is for July salaries payable. | ||
13 | Received $3,610 cash for services performed in August. | ||
15 | Purchased additional equipment on account $1,930. | ||
17 | Paid creditors $1,930 of accounts payable due. | ||
22 | Purchased supplies on account $870. | ||
24 | Paid salaries $2,700. | ||
27 | Performed services worth $4,420 on account and billed customers. | ||
29 | Received $770 from customers for services to be provided in the future. | ||
31 Declared and paid a $500 dividend Prepare an adjusted trail balance as at August 31. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started