Requirement #1:

During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,

completed the following transactions.

July 1

Began business by making a deposit in a company bank account of $40,000, in exchange

for 4,000 shares of $10 par value common stock.

July 3

Paid the current month's rent, $2,500

July 5

Paid the premium on a 1-year insurance policy, $3,600

July 7

Purchased supplies on account from Little Company, $700.

July 10

Paid employee salaries, $2,800

July 14

Purchased equipment from Lake Company, $9,500. Paid $1,500 down and the balance was

placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1.

Note: Use accounts payable for the balance due.

July 15

Received cash for preparing tax returns for the first half of July, $6,500

July 19

Made payment on account to Lake Company, $500.

July 31

Received cash for preparing tax returns for the last half of July, $8,250

July 31

Declared and paid cash dividends of $450.

Requirement #4:

Prepare adjusting entries using the following information in the General Journal

below. Show your calculations!

a) One month's insurance has expired.

b) The remaining inventory of supplies is $300.

c) The estimated depreciation on equipment is $125.

d) The estimated income taxes are $2700.

General Journal

Date

Description (Account Name)

Debit

Credit

Requirement #5:

Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.

Just add to the balances that are already listed.

Requirement #6:
Prepare an adjusted trial balance in the space below.
Quick Tax Corporation
Adjusted Trial Balance
July 31
	0	0