Question

Mike Shaw began his contracting business, Mike Shaw Contractors, on April 1, 2017. The post-closing trial balance for Mike Shaw Contractors for April is down below. During May, Mike Shaw Contractors entered into the following transactions: May Received cash from clients as an advance payment for services to be 3. provided and recorded it as unearned fees, $4,500. 5. Received cash from clients on account, $2,450. 9. Paid cash for a newspaper advertisement, $225. 13. Paid Office Station Co. for part of the debt incurred on April 5, $640. 15. Recorded services provided on account for the period May 1-15, $9,180. 16. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, $735. 21. Recorded services provided on account for the period May 16-20, $4,820. 25. Recorded cash from cash clients for fees earned for the period May 17-23, $7,900. 27. Received cash from clients on account, $9,520. 28. Paid part-time receptionist for two weeks' salary, $750. Paid telephone bill for May, $260. 30. Paid electricity bill for May, $810. 31. 31. Recorded cash from cash clients for fees earned for the period May 26-31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,650. 31. Mike Shaw withdrew $10,500 for personal use.

Answer 1

Solution:

1. In the books of Mike Shaw Contractors :

Date	Account Titles	Debit	Credit
May		$	$
3	Cash	4,500
	Unearned Fees		4,500
5	Cash	2,450
	Accounts Receivable		2,450
9	Miscellaneous Expense	225
	Cash		225
13	Accounts Payable	640
	Cash		640
15	Accounts Receivable	9,180
	Fees Earned		9,180
16	Salaries Payable	120
	Salary Expense	630
	Cash		750
17	Cash	8,360
	Fees Earned		8,360
20	Supplies	735
	Accounts Payable		735
21	Accounts Receivable	4,820
	Fees Earned		4,820
25	Cash	7,900
	Fees Earned		7,900
27	Cash	9,520
	Accounts Receivable		9,520
28	Salary Expense	750
	Cash		750

May 30	Miscellaneous Expense	260
	Cash		260
31	Miscellaneous Expense	810
	Cash		810
31	Cash	3,300
	Fees Earned		3,300
31	Accounts Receivable	2,650
	Fees Earned		2,650
31	Mike Shaw, Drawing	10,500
	Cash		10,500

3. Mike Shaw Contractors

Unadjusted Trial Balance

May 31, 2017

Account Titles	Debit	Credit
	$	$
Cash	44,195
Accounts Receivable	8,080
Supplies	2,085
Prepaid Rent	3,200
Prepaid Insurance	1,500
Office Equipment	14,500
Accumulated Depreciation		330
Accounts Payable		895
Unearned Fees		7,000
Mike Shaw, Capital		42,300
Mike Shaw, Drawings	10,500
Fees Earned		36,210
Salary Expense	1,380
Rent Expense	0
Supplies Expense	0
Depreciation Expense	0
Insurance Expense	0
Miscellaneous Expense	1,295
Totals	86,735	86,735