Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2-3 a local radio station. The account titles, FM Broadcasting was organized on April 30 to operate numbers and beginning balances on May 1,

image text in transcribed
image text in transcribed
Problem 2-3 a local radio station. The account titles, FM Broadcasting was organized on April 30 to operate numbers and beginning balances on May 1, 20XX are as follows: 202 Unearned service revenue Share capital-ordinary 110 Cash $300,000 $300,000 300 150 Accounts receivable $2,000 301 Retained earnings $2,000 180 Supplies 400 Service revenue 191 Prepaid insurance 500 Rent expense 192 Equipment 501 Salaries expense 194 Film Library 502 Utilities expense 200 Notes payable 201 Accounts payable $150,000 The transactions of May were as follows: 1 Bought supplies costing $100 on account from Drago Co. 3 Purchased a film library at a cost of $30,000 from Godom Co; making a cash down payment of $15,000 cash, with the balance payable in 30 days. 5 Collected $50,000 cash for radio advertising services provided. 7 Billed Kong Co. for $70,000 for radio advertising services rendered during the first week of May. The agreement with Kong called for payment be by May 9 Mr. Eiden paid $9,000 in advance for advertising services to be provided in June. 11 Provided advertising services on account for KIMS Hospital $11,000. 26 $150,000 13 Borrowed $13,000 from Axis bank by issuing a 12%, 3 months note Paid insurance premium in advance for one year $1.500. 15 17 19 21 Issued a check of $17,000 to Gono in payment of an accounts payable incurred on April 30. Purchased photocopy equipment on account $1,900 from Sanyo Co. Rent expense for May of $2.100 will be paid on June 1. Collected cash of $2,300 from Kong, a credie customer 25 Paid employees' salaries for May $25.000. 23 27 Utilities expense for May $2.700 will be paid on June 7.. Instructions: a. Journalize the transactions with the explanation. b. Post to the ledger accounts. c. Prepare a trial balance as of May 31, 20XX GENERAL JOURNAL Page 1 Credit Date Account Titles and Explanations May 1 3 5 7 9 11 13 15 27 Ref Debit

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

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

11th Canadian edition Volume 2

1119048540, 978-1119048541

Students also viewed these Accounting questions