Just add to the balances that are already listed. Requirement #1: During its fir

Question

Just add to the balances that are already listed.

Requirement #1: During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $2,500 July 5 Paid the premium on a 1-year insurance policy, $3,600 July 7 Purchased supplies on account from Little Company, $700. July 10 Paid employee salaries, $2,800 July 14 Purchased equipment from Lake Company, $9,500. 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 preparing tax returns for the first half of July, $6,500 July 19 Made payment on account to Lake Company, $500. July 31 Received cash for preparing tax returns for the last half of July, $8,250 July 31 Declared and paid cash dividends of $450. Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. b) The remaining inventory of supplies is $300. c) The estimated depreciation on equipment is $125. d) The estimated income taxes are $2700. General Journal Date Description (Account Name) Debit Credit Requirement #5: Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.

Just add to the balances that are already listed.

Requirement #6: Prepare an adjusted trial balance in the space below. Quick Tax Corporation Adjusted Trial Balance July 31 0 0

Explanation / Answer

Requirement 1:

In the books of Quick Tax Corporation :

Requirements 2 & 5:

T- Accounts:

Cash :

Supplies:

Prepaid Insurance:

Equipment:

Accumulated Depreciation : Equipment

Accounts Payable:

Income Taxes Payable:

Common Stock:

Dividends:

Service Revenue:

Salaries Expense:

Rent Expense:

Insurance Expense:

Supplies Expense:

Depreciation Expense:

Income Tax Expense:

Requirement 4:

Adjusting entries:

Requirement 6:

Quick Tax Corporation

Adjusted Trial Balance

July 31

Date General Journal Debit Credit $ $ July 1 Cash 40,000 Common Stock 40,000 July 3 Rent Expense 2,500 Cash 2,500 July 5 Prepaid Insurance 3,600 Cash 3,600 July 7 Supplies 700 Accounts Payable 700 July 10 Salaries Expense 2,800 Cash 2,800 July 14 Equipment 9,500 Cash 1,500 Accounts Payable 8,000 July 15 Cash 6,500 Service Revenue 6,500 July 19 Accounts Payable 500 Cash 500 July 31 Cash 8,250 Service Revenue 8,250 July 31 Dividends 450 Cash 450

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