12 Paid a eash dIVIUell Required a. Set up accounts for each item in the August
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Question
12 Paid a eash dIVIUell Required a. Set up accounts for each item in the August I trial balance and enter the beginning Also provide accounts for the following items: Service Fees Earned, Wage Expense, Ad entries and record the transactions for August in the appropriate T-accounts, using the dates b. Expense, Rent Expense, Fuel Expense, Insurance Expense, and Interest Expense. Prepare Prepare a trial balance as of August 31. Transaction Analysis and Trial Balance Mary Aker opened a tax practice on June 1. The ng accounts will be needed to record her transactions for June: Cash: Accounts Receivable Supplies; Tax Library: Office Furniture and Fixtures; Accounts Payable; Notes Payable stock: Dividends; Professional Fees Earned; Rent Expense; Salaries Expense; Advertising tilities Expense: and Interest Expense. The following transactions occurred during the mowe Office month. une: 1 Aker opened a business checking account at a local bank, investing $13.500 in her une practice in exchange for common stock. 2 Purchased office furniture and fixtures for $9,800, paid $2,800 cash, and gave a note payable for the balance. 3 Purchased books and software for a tax library on account, $3,700. 4 Purchased office supplies for cash, $950. 5 Paid rent for June, $750. 6 Returned $300 of books with defective bindings. The return reduced the amount owed to the supplier 7 Billed clients for professional services rendered, $8.500. 8 Paid $1,700 on account for the library items purchased on June 3. 9 Collected $5,900 on account from clients billed on June 7 10 Paid June salaries, $3.100. 11 Received invoice for June advertising, to be paid in July $300. 12 Paid stockholders $800 cash as a dividend. 13 Paid utilities for June, $160 14 Paid interest for June on note payable, $250.Explanation / Answer
Salaries expenses
Assets = $8,890 + $2,600 + $950 + $3,400 +$9,800 = $25,640
Liabilities = $2,000 + $7,000 = $9,000
Shareholder's equity = $13,500 + $8,500 - $750 - $3,100 - $300 - $160 - $250 - $800 = $16,640
Threrefore, Assets = Liabilities + Shareholder's Equity
Notes
1. Expenses reduces the shareholder's Equity. So, it shall have negative signs.
2. Accounts receivable total is wrong. May be the formual given in the excel is wrong. It is not $8,500. The total is $2,600.
3. Cash balance will decrease when interest on notes is paid.
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Assets Liabilities Stock holder's Equity Date Cash Accounts Receivable Office Supplies Tax library Office furniture and fixutures Accounts payable Notes Payable Common Stock Dividend Professional services Rent ExpneseSalaries expenses
Advertising expenses Utilities expenses Interest expense 1 $13,500 $13,500 2 (2,800) $9,800 $7,000 3 $3,700 $3,700 4 (950) 950 5 (750) ($750) 6 (300) (300) 7 $8,500 $8,500 8 (1,700) (1,700) 9 $5,900 ($5,900) 10 ($3,100) ($3,100) 11 $300 ($300) 12 ($800) ($800) 13 ($160) ($160) 14 ($250) ($250) $8,890 $2,600 $950 $3,400 $9,800 $2,000 $7,000 $13,500 (800) $8,500 ($750) ($3,100) ($300) ($160) ($250)Related Questions
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