Details of this Paper

Santa Ana Services was formed on May 1 2014 The following transactions took place during the first month

Description

solution


Question

Santa Ana Services was formed on May 1 2014 The following transactions took place during the first month;Santa Ana Services was formed on May 1, 2014. The following transactions took place during the first month.;Transactions on May 1;1. Don Humes invested $40,000 cash in the company, as its sole owner.;2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month.;3. Signed a 2-year rental agreement on a warehouse, paid $24,000 cash in advance for the first year.;4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately, the remainder will be paid in 6 months.;5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.;Transactions during the remainder of the month;6. Purchased basic office supplies for $500 cash.;7. Purchased more office supplies for $1,500 on account.;8. Total revenues earned were $20,000?$8,000 cash and $12,000 on account.;9. Paid $400 to suppliers for accounts payable due.;10. Received $3,000 from customers in payment of accounts receivable.;11. Received utility bills in the amount of $350, to be paid next month.;12. Paid the monthly salaries of the two employees, totalling $6,100.;Instructions;(a) Prepare journal entries to record each of the events listed. (Omit explanations.);(b) Post the journal entries to T-accounts.;(c) Prepare a trial balance as of May 31, 2014.

 

Paper#28781 | Written in 18-Jul-2015

Price : $57
SiteLock