Subject :Principles of Accounting

Q 1:NC operates a business closes its accounts and prepares financial statements at the end of each

month. During the month of June entered into the following transactions:

June 1Owner deposited $ 150000 cash in a bank account .

June 2Purchased $ 240000 equipment, paid $ 100000 cash and issued a 9 percent note for the

balance.

June 3Paid $ 10,000 four months advance rent.

June 4Received $12000 cash as advance payment on equipment from xyz company.

June 5Purchased office supplies on account from ABC $ 1850 payment due in 30 days.

June 9Purchased on account from F.P. distributor $ 290 parts needed to repair a rental tractor.

Payment is due in ten days.( HINT: USE MAINTENANCE EXPENSE)

June 10Paid salaries for $ 3200.

June 15Equipmentrental fees earnedamount $ 8900 ,of which $ 7200was received in cash.

June 18Paid the accounts payable to F.P. distributor.

June 19Collected $ 800 of the accounts receivable.

June 23Rented an equipment to M.L.company at a price $ 110 per day to be paid when returned

back. This equipment is expected to remainwith M.L company two to three weeks.

June 25Paid salaries $ 3200.

June 28Owner withdrew $ 3000 cash from the business for personal use.

June 30Equipment rent fees earned and received in cash amounted $7850.

June 30Received a bill from WAPDA for the month of June $ 340. Payment is due in 15 days.

Other data:

1. During June, the company earned $ 3210 of rental fees paid in advance on June 3.
2. Office supplies on hand at June 30, are estimated at $ 1160.
3. The rental equipment is being is being deprecated over a period of 10 years.
4. The advance payment of rent on June 3 covered a period of four months.
5. As of June 30 seven days rent on equipment rented to M.L .COMPANY has earned.
6. As of June 30, interest accrued on note payable amounted to $ 1050.
7. Salaries earned by employees amounted to $ 960.

Required:

1. Prepare a ten column work sheet. ? ( Also need explanation)