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Wickers Restoration Services had the following transactions on May.

1.		Received $48,000 from sale of common stock.
2.		Paid rent on office for the month, $880.
3.		Purchased supplies on account, $1,750.
4.		Earned fees, receiving cash, $12,600.
5.		Paid creditor on account, $1,000.
6.		Paid automobile expenses for month, $375, and miscellaneous expenses, $250.
7.		Paid office salaries for the month, $3,900.
8.		Earned fees which the customer will pay next month, $2,400.
9.		Determined that the cost of supplies used was $280.
10.		Paid dividends, $2,400.

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Wickers Restoration Services had the following transactions on May. 1. Received $48,000 from sale of common stock. 2. Paid rent on office for the month, $880. 3. Purchased supplies on account, $1,750. 4. Earned fees, receiving cash, $12,600. 5. Paid creditor on account, $1,000. 6. Paid automobile expenses for month, $375, and miscellaneous expenses, $250. 7. Paid office salaries for the month, $3,900. 8. Earned fees which the customer will pay next month, $2,400. 9. Determined that the cost of supplies used was $280. 10. Paid dividends, $2,400. a. Prepare the journal entries for the above transactions on May. If an amount box does not require an entry, leave it blank. 000 100001 4. 5. 6. 7 8. 10. 30 00 00 b. Prepare T accounts, using the account titles in (1). Post (in chronological order) the journal entries to these accounts, selecting the appropriate number to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. Cash Bal. Accounts Receivable Supplies Accounts Payable Bal, Bal. Common Stock Dividends Fees Earned Bal. Rent Expense Automobile Expense Wages Expense Supplies Expense Supplies Expense Miscellaneous Expense c. Prepare an unadjusted trial balance as of May 31. If an amount box does not require an entry, leave it blank. Wickers Restoration Services Unadjusted Trial Balance May 31 Debit Balances Credit Balances d. Determine the net income for May. e. Determine the retained earnings at the end of May, assuming this was the first month of business. Previous Next