Question
Problem #1 JFK Corporation provides blood-testing services for various businesses. The company started business early in June 2013. The following is the balance sheet of
Problem #1
JFK Corporation provides blood-testing services for various businesses. The company started business early in June 2013.
The following is the balance sheet of the company as of June 30, 2013:
JFK Corporation | |||
Balance Sheet | |||
June 30 2013* | |||
Assets | Liabilities | ||
Cash | $46,000 | Taxes payable | 25,000 |
Accounts receivable | 51,500 | Accounts Payable | $15,000 |
Stationery | 2,000 | Total Liabilities | $40,000 |
Land | 150,000 |
|
|
Building | 100,000 | Owners Equity |
|
Blood testing equipment | 110,000 | Capital Stock | 350,000 |
|
| Retained Earnings | 69,500 |
Total Assets | $459,500 | Total Owners Equity | $419,500 |
|
| Total Liabilities and Owners Equity | $459,500 |
*Additional information:
The total amount of accounts receivable the company had as of June 30, is to be collected on October 31, 2013;
The total amount of taxes payable the company had as of June 30, is to be paid by July 31, 2013;
The total amount of accounts payable the company had as of June 30, is to be paid by September 30, 2013;
JFK Co. had the following transactions during the month of July, 2013:
1 | 02.07 | Purchased computers for $8,000. $3,000 paid immediately, the remaining balance is to be paid by August 31, 2013; |
2 | 04.07 | Provided blood-testing service to Palm Co. for $38,000. $5,000 collected immediately, and the remaining balance Palm Co will pay by October 31, 2013; |
3 | 08.07 | Purchased stationery for $1,500. This amount is to be paid by September 30, 2013; |
4 | 10.07 | Paid all debt for taxes; |
5 | 15.07 | Sold one computer, which was not used, for $1,000. The total amount is to be collected by September 30, 2013; |
6 | 18.07 | Signed a contract with Gemma Co to provide blood-testing service in the amount of $16,000 in September 2013; |
7 | 20.07 | Received $7,000 from Ruby Inc. for the services to be provided in August 2013; |
8 | 31.07 | Received and paid a bill of $300 for office utilities for July 2013; |
9 | 31.07 | Salaries of employees for July is $12,000 to be paid by August 10, 2013; |
10 | 31.07 | Paid office rent for August 2013 in the amount of $2,500; |
Required:
1. Prepare journal entries in the books of JFC Co. for July 2013;
2. Prepare the Unadjusted Trial Balance of JFC Co., including the effect of July 2013 transactions.
Show all supporting calculations where necessary!
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