6. Entry and trial balance preparation. Lee Adkins is a portrait artist. The following schedule represents Lee?s combined chart of accounts and trial balance as of May 31.;Account number Account name Debit Credit;110;Cash;$ 2,700;120;Accounts Receivable;12,100;130;Equipment and Supplies;2,800;140;Studio;45,000;210;Accounts Payable;$2,600;310;Lee Adkins, Capital;57,400;320;Lee Adkins, Drawing;30,000;410;Professional Fee Revenue;39,000;510;Advertising Expense;2,300;520;Salaries Expense;2,100;540;Utilities Expense;2,000;$99,000;$99,000;The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June;6/2;Collected $3,000 on account from customers;6/7;Sold 25% of the equipment and supplies to a young artist for $700 cash;6/10;Received a $300 invoice from the accountant for preparing last quarter's financial Statements.;6/15;Paid $1,900 to creditors on account.;6/27;Adkins withdrew $2,000 cash for personal use.;6/30;Billed a customer $3,000 for a portrait painted this month.;a. Record the necessary journal entries for June on page 2 of the company?s general journal. (See Exhibit 2.6);b. Open running balance ledger ?T? accounts by entering account titles, account num?bers, and May 31 balances. (See exhibit 2.3 and 2.4);c. Post the journal entries to the ?T? accounts.;d. Prepare a trial balance as of June 30. (See exhibit 2.9);7. Journal entry preparation. On January 1 of the current year, Peter Houston invested $80,000 cash into his companyMuniServ.The cash was obtained from an owner investment by Peter Houston of $50,000 and a $30,000 bank loan. Shortly thereafter, the company ac?quired selected assets of a bankrupt competitor. The acquisition included land ($10,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $15,000 (an account payable) by February 15.;During January, the company had additional cash outlays for the follow?ing items;Purchases of store equipment;$4,600;Note payment;500;Salaries expense;2,300;Advertising expense;700;The January utility bill of $200 was received on January 31 and will be paid next month. MuniServ rendered services to clients on account amounting to $9,400. All customers have been billed, by month end, $3,700 had been received in settlement of account balances.;Instructions;a. Present journal entries that reflect MuniServ's January transactions, including the $80,000raised from the owner investment and loan. (See exhibit 2.6);b. Compute the total debits, total credits, and ending balance that would befound in the company's Cash account. (Post to ?T? Accounts, see exhibit 2.3 and 2.4);c. Determine the amount that would be shown on the January 31 trial balance for Accounts;Payable. Is the balance a debit or a credit?
Paper#81710 | Written in 18-Jul-2015Price : $22