Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The company has the following account balances on June 1, 2020. (all accounts have their normal balances) Drawings: 1000 Cash: 20000 Service revenue: 50000 Capital:

The company has the following account balances on June 1, 2020. (all accounts have their normal balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write no entry.

  1. On June 2, the company prepaid rent for July to September for $6,000.
  2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
  3. On June 10, the company collected $4,000 it was owed on account.
  4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
  5. On June 22 the company provided product and collected $5,000.
  6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
  7. On June 27 the company paid $2,000 cash on account.
  8. On June 29, the owner withdrew $600 for personal use.
  9. On June 30, the company purchased $1,000 of supplies on account.
  10. On June 30, the company paid employee salaries of $3,000.

Question: Open T-accounts using the beginning balances provided and post entries into T-accounts. Calculate the balance of each one.

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

The Politics Of Financial Risk Audit And Regulation

Authors: Atul Shah

1st Edition

1138042358, 978-1138042353

More Books

Students also viewed these Accounting questions

Question

Describe the process used to prevent flicker in a video screen.

Answered: 1 week ago

Question

Discuss consumer-driven health plans.

Answered: 1 week ago