Question

Problem 2-3A (Part Level Submission) Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2018 (the end of its fiscal year) Marigold Corp. Trial balance December 31, 2018 Debit Credit Cash Accounts Recelvable Supplies Prepaid Rent Equipment Accounts Payable Common Stock Retained Earnings $ 8,000 16,000 13,000 4,000 19,800 $20,500 30,300 10,000 $60,800 $60,800 Summarized transactions for January 2019 were as follows. 1. Advertising costs, paid in cash, $1,140 2. Additional supplies acquired on account $3,320 3. Miscellaneous expenses, paid in cash, $1,630 4. Cash collected from customers in payment of accounts recelvable $12,990 5. Cash paid to creditors for accounts payable due $12,540 6. Repair services performed during January: for cash $6,660; on account $9,440 7. Wages for January, paid in cash, $2,350 8. Dividends during January were $2,540

Answer 1

Ledger accounts are as prepared below:

Cash
Particulars	Amount	Particulars	Amount
Beg Balance	8,000	1	1,140
4	12,990	3	1,630
6	6,660	5	12,540
		7	2,350
		8	2,540
	27,650		20,200
Ending balance	7,450
Account Receivable
Particulars	Amount	Particulars	Amount
Beg Balance	16,000	4	12,990
6	9,440
	25,440		12,990
Ending balance	12,450
Supplies
Particulars	Amount	Particulars	Amount
Beg Balance	13,000
2	3,320
	16,320		0
Ending balance	16,320
Prepaid Rent
Particulars	Amount	Particulars	Amount
Beg Balance	4,000
	4,000		0
Ending balance	4,000
Equipment
Particulars	Amount	Particulars	Amount
Beg Balance	19,800
	19,800		0
Ending balance	19,800
Accumulated dep-Equipment
Particulars	Amount	Particulars	Amount
		Beg Balance	0
			0
		Ending balance	0
Accounts Payable
Particulars	Amount	Particulars	Amount
5	12,540	Beg Balance	20,500
		2	3,320
	12,540		23,820
		Ending balance	11,280
Dividend
Particulars	Amount	Particulars	Amount
8	2,540
	2,540		0
Ending balance	2,540
Common Stock
Particulars	Amount	Particulars	Amount
		Beg Balance	30,300
	0		30,300
		Ending balance	30,300
Retained Earnings
Particulars	Amount	Particulars	Amount
		Beg Balance	10,000
	0		10,000
		Ending balance	10,000
Advertising Expense
Particulars	Amount	Particulars	Amount
1	1,140
	1,140		0
Ending balance	1,140
Miscellaneous Expense
Particulars	Amount	Particulars	Amount
3	1,630
	1,630		0
Ending balance	1,630
Repair Service Revenue
Particulars	Amount	Particulars	Amount
		6	16,100
			16,100
		Ending balance	16,100
Wages Expense
Particulars	Amount	Particulars	Amount
7	2,350
	2,350		0
Ending balance	2,350