Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P2.3 ( LO1,2,3,4), AP Maquoketa Services was formed on May 1, 2022. The following transactions took place during the first month. Transactions on May 1:

image text in transcribed P2.3 ( LO1,2,3,4), AP Maquoketa Services was formed on May 1, 2022. The following transactions took place during the first month. Transactions on May 1: 1. Jay Bradford invested $40,000 cash in the company, as its sole owner. 2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year. 4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 weeks. 5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment. Transactions during the remainder of the month: 6. Purchased basic office supplies for $420 cash. 7. Purchased more office supplies for $1,500 on account. 8. Total revenues earned were $20,000$8,000 cash and $12,000 on account. 9. Paid \$40o to suppliers for accounts payable due. 10. Received $3,000 from customers in payment of accounts receivable. 11. Received utility bills in the amount of $380, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling $6,100. Instructions a. Prepare journal entries to record each of the events listed. (Omit explanations.) b. Post the journal entries to T-accounts. c. Prepare a trial balance as of May 31, 2022. c. Trial balance totals $81,480 Prepare a correct trial balance

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

Students also viewed these Accounting questions