Question
On July 1, 20X6, Robert M. Donald incorporated Donald Corp. in the state of Colorado. Donald Corp. provides Pet Care Services. The following transactions occurred
On July 1, 20X6, Robert M. Donald incorporated Donald Corp. in the state of Colorado. Donald Corp. provides Pet Care Services. The following transactions occurred during July.
Jul. 1 Donald Corp. moved into its rented office suite in Greenwood Village.
Jul. 1 Donald Corp. received $54,000 from its investors (shareholders) in exchange for Donald Corp.s common stock.
Jul. 1 Hired three assistants whose total salaries will be $1,125 per week.
Jul. 3 Paid $2,700 in office suite rent for July.
Jul. 5 Purchased supplies on credit, $3,900.
Jul. 7 Provided pet care services for and billed clients for $5,700.
Jul. 10 Clients paid deposits of $2,100 for pet care services to be performed in August.
Jul. 20 Received $8,400 cash for pet care services provided from July 11 to 20.
Jul. 31 Paid assistants salaries for the month, $4,500.
Jul. 31 Paid $900 from supplies paid on credit.
Dickens Corp. utilizes the following accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Rent Expense, and Salaries Expense.
- Prepare journal entries for the above transactions and include explanations.
- Open ledger accounts and post the transactions. You will utilize the above listed accounts and include the transactions for each account. Then have a total for each account.
- Use the balances from the ledger accounts to prepare a trial balance as of July 31, 20X6.
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