Question
Use the following account names for journal entries. Chart of Accounts: Account Title (Normal Balance) Assets Cash (Debit) Prepaid Insurance (Debit) Supplies (Debit) Equipment (Debit)
Use the following account names for journal entries. | |||
Chart of Accounts: Account Title (Normal Balance) | |||
Assets | |||
Cash (Debit) | |||
Prepaid Insurance (Debit) | |||
Supplies (Debit) | |||
Equipment (Debit) | |||
Accumulated Depreciation - Equipment (Credit) | |||
Liabilities | |||
Accounts Payable (Credit) | |||
Income Tax Payable (Credit) | |||
Stockholders' Equity | |||
Common Stock (Credit) | |||
Retained Earnings (Credit) | |||
Dividends (Debit) | |||
Revenue | |||
Revenue (Credit) | |||
Expenses | |||
Rent Expense (Debit) | |||
Salaries Expense (Debit) | |||
Insurance Expense (Debit) | |||
Supplies Expense (Debit) | |||
Depreciation Expense (Debit) | |||
Income Tax Expense (Debit) |
Requirement 1Prepare the Journal Entries in the General Journal
Requirement 2Post Journal Entries to the General Ledger
Requirement 3Prepare a Trial Balance
Requirement 4Prepare the Adjusting Entries
a) One month's insurance has expired.
b) The remaining inventory of supplies is $375.
c) The estimated depreciation on equipment is $175.
d) The estimated income taxes are $3,200.
Requirement 5Post Adjusting Entries to the General Ledger
Requirement 6Prepare an Adjusted Trial Balance
Requirement 7Prepare the Financial Statements
Requirement 8Prepare the Closing Entries
Requirement 9Post Closing Entries to the General Ledger
Requirement 10Prepare the Post Closing Trial Balance
During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing,
completed the following transactions.
July 1 Began business by making a deposit in a company bank account of $90,000, in exchange
for 9,000 shares of $10 par value common stock.
July 3 Paid the current month's rent, $5,500.
July 5 Paid the premium on a 1-year insurance policy, $4,800
July 7 Purchased supplies on account from Little Company, $900.
July 10 Paid employee salaries, $3,300
July 14 Purchased equipment from Lake Company, $11,500. 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 plumbing revenue for the first half of July, $7,700
July 19 Made payment on account to Lake Company, $500.
July 31 Received cash for plumbing revenue for the last half of July, $8,505
July 31 Declared and paid cash dividends of $600
Use the following account names for journal entries.
Chart of Accounts: Account Title (Normal Balance)
Assets
Cash (Debit)
Prepaid Insurance (Debit)
Supplies (Debit)
Equipment (Debit)
Accumulated Depreciation - Equipment (Credit)
Liabilities
Accounts Payable (Credit)
Income Tax Payable (Credit)
Stockholders' Equity
Common Stock (Credit)
Retained Earnings (Credit)
Dividends (Debit)
Revenue
Revenue (Credit)
Expenses
Rent Expense (Debit)
Salaries Expense (Debit)
Insurance Expense (Debit)
Supplies Expense (Debit)
Depreciation Expense (Debit)
Income Tax Expense (Debit)
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