Jul Gagne received $62,000 cash and issued common stock to the stockholders. 2 3
ID: 2606908 • Letter: J
Question
Jul Gagne received $62,000 cash and issued common stock to the stockholders. 2 3 Purchased supplies, $800, and equipment, $12,100, on account 4 Performed services for a customer and received cash, $5,600 7 Paid cash to acquire land, $39,000. 11 Performed services for a customer and billed the customer, $2,900. Gagne expects to collect within one month. 16 Paid for the equipment purchased July 3 on account. 17 Received and paid the telephone bill, $590 Received partial payment from customer on account, $800. 18 22 29 30 30 Received and paid the water and electricity bills, $420. Received $2,300 cash for servicing the heating unit of a customer. Paid employee salaries, $2,500 Declared and paid dividends of $2,000 Requirements 1. Record each transaction in the journal. Be sure to record the date in each entry. Explanations are not required. 2. Post the transactions to the T-accounts, using transaction dates as posting references. 3. Prepare the trial balance of Gagne Services, Inc., at July 31 of the current year 4. John Gagne, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether July was profitable (and by how much)Explanation / Answer
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General journal for the month of July Date Account title Debit Credit 7/2 Cash 62000 Common stock 62000 7/3 Supplies 800 Equipment 12100 Accounts Payable 12900 7/4 Cash 5600 Service Revenue 5600 7/7 Land 39000 Cash 39000 7/11 Accounts Receivable 2900 Service Revenue 2900 7/16 Accounts Payable 12100 Cash 12100 7/17 Telephone expense 590 Cash 590 7/18 Cash 800 Accounts Receivable 800 7/22 Utilities expense 420 Cash 420 7/29 Cash 2300 Service Revenue 2300 7/30 Salaries expense 2500 Cash 2500 7/30 Dividends 2000 Cash 2000Related Questions
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