The Precision Computer Centre created its chart of accounts as follows. (Excel templates for this question are available in MyLab Accounting.)

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The following problem continues from Chapter 1. The balances as of May 31 have been brought forward in the Excel templates for this question in MyLab Accounting. Additional transactions in June were as follows:

1. K.Received the phone bill for the month of May, $155.

2. L.Paid $150 (cheque No. 205) for insurance for the month.

3. M.Paid $200 (cheque No. 206) of the amount due from Transaction D in Chapter 1.

4. N.Paid advertising expense for the month, $1,400 (cheque No. 207).

5. O.Billed a client (Jeannine Sparks) for services rendered, $850.

6. P.Collected $900 for services rendereda cash sale.

7. Q.Paid the electric bill in full for the month of May (cheque No. 208transaction H, Chapter 1), $85.

8. R.Paid cash (cheque No. 209) for $50 in stamps.

9. S.Purchased $200 worth of supplies from Computer Connection on account.

Assignment

1. Set up T accounts in a ledger.

2. Record transactions K through S in the appropriate T accounts.

3. Foot the T accounts where appropriate.

4. Prepare a trial balance at the end of June 2022.

5. From the trial balance, prepare an income statement, a statement of owners equity, and a balance sheet for the two months ending June 30, 2022.

Recording transactions in T accounts; preparing a trial balance; and preparing financial statements from the trial balance

(60 min)

Check Figure

Total Trial Balance $8,305