The trial balance for ShirtCraft, Inc., at January 31 is shown as follows: Cash-
ID: 2355926 • Letter: T
Question
The trial balance for ShirtCraft, Inc., at January 31 is shown as follows:
Cash- $5600 debit
Accts Receivable- $12,890 debit
Supplies- $9235 debit
Prepaid Rent- $1500 debit
Equipment- $30,500 debit
Accounts Payable- $7625 credit
Unearned Revenue- $6400 credit
Notes Payable- $15,000 credit
Common Stock- $25,000 credit
Service Revenue- $9650 credit
Salaries Expense- $2300 debit
Utilities Expense- $650 debit
Dividends- $1000 debit
Totals- $63,675 debit, $63,675 credit
During February the following transactions occured:
Feb 1- Billed customers $2500 for services rendered
Feb 1- Paid $150 interest on note from bank
Feb 4- Received $4500 from customers billed in Jan.
Feb 8- Bought $560 of office supplies on account.
Feb 12- Completed a $3500 service for which payment was received in January.
Feb 18- Paid $1895 towards a Jan purchase of supplies on account
Feb 26- Paid $1000 in dividends to stockholders.
Feb 27- Paid $2100 for February salaries and $775 for Feb utilities.
Question:
(a & c)- Prepare opening T accounts for the month of February and post journal entries to appropriate T accounts. T Accounts to fill in (blank if no entry): Cash, Accounts Receivable, Supplies, Prepaid Rent, Equipment, Accounts Payable, Unearned Revenue, Notes Payable, Common Stock, Service Revenue, Dividends, Salaries Expense, Interest Expense, Utilities Expense.
b- Prepare journal entries for transactions in the month of February.
c- Prepare a trial balance at Feb 28. List the accounts in chart of account order. Enter all amounts as positive numbers.
I am pretty sure that I did this right. It's part of my homework but I wanted something to check it against before I hand it in. Thanks!
Explanation / Answer
It will be difficult to reformat everything to give you the t-accounts, but I can provide you with the journal entries for the transactions: During February the following transactions occured: Feb 1- Billed customers $2500 for services rendered Accounts receivable Dr. 2500 Fees earned Cr. 2500 Feb 1- Paid $150 interest on note from bank Interest expense Dr. 150 Cash Cr. 150 Feb 4- Received $4500 from customers billed in Jan. Cash Dr. 4500 Accounts receivable Cr. 4500 Feb 8- Bought $560 of office supplies on account. Office supplies Dr. 560 Accounts payble Cr. 560 Feb 12- Completed a $3500 service for which payment was received in January. Unearned revenue Dr. 3500 Service revenue Cr. 3500 Feb 18- Paid $1895 towards a Jan purchase of supplies on account Accounts payable Dr. 1895 Cash Cr. 1895 Feb 26- Paid $1000 in dividends to stockholders. Dividends Dr. 1000 Cash Cr. 1000 Feb 27- Paid $2100 for February salaries and $775 for Feb utilities. Wages expense Dr. 2100 Utilities expense Dr. 775 Cash Cr. 2875
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