Question

2 MIX Inc. is a service business incorporated on January, 2018 to provide personal training for athletes aspiring to play college sports. The following is a simplified list of accounts and amounts reported in its accounting records at the beginning of its second quarter of operations on April 1, 2018(the amounts are in thousands of dollars). The accounts have normal debit or credit balances. Accounts Payable $ 600 Notes Payable (long-term) $ 200 Accounts Receivable 300 Notes Payable (short-term) 500 Accumulated Depreciation 900 Prepaid Rent 100 Cash 300 Rent Expense 400 Common Stock 200 Retained Earnings 1,500 Deferred Revenue 200 Salaries and Wages Expense 2,200 Depreciation Expense 300 Service Revenue 6,200 Equipment 3,200 Supplies 500 Income Tax Expense 300 Supplies Expense 200 Interest Revenue 100 Travel Expense 2,600 After the first quarter, MIX had the following transactions: a) Issued additional shares of common stock for $50 on April 15. b) Purchased equipment for $250 cash on May 1 c) Received $400 cash for future services on May 25. d) Borrowed $220 cash on July 1, 2018, signing a six-month note payable. e) Paid two-year insurance premium on equipment in the amount of $600 on July 1, 2018, and debited in full to Prepaid Insurance on that date. Coverage began on July 1. f) Purchased software on July 4, $30 cash. g) Purchased supplies on July 5 on account for future use, $7. h) Recorded revenues on December 6 of $550, including $80 on credit and $470 received in cash. i) Recognized salaries and wages expense on December 7 of $30; paid in cash. j) Collected accounts receivable on December 8, $90. k) Paid accounts payable on December 9, $100. Data for adjusting journal entries on December 31: 1) Amortization for 2018, $5. m) A physical count of supplies on December 31 showed Supplies costing $300 were still on hand. n) Depreciation for 2018, $40. 0) Accrued interest of $5 on notes payable. p) Salaries and wages incurred but not yet paid or recorded, $30. 9) Service provided but to be collected in January 2019, $45 r) Income tax expense for 2018 was $4 and will be paid in 2019. s) Six months of insurance on equipment has been used.

can you answer the summarize question

Answer 1

T-Accounts (Summary of transactions): Beg. Bal. Accounts receivable (A) Beg. Bal. $300 j) $80 $90 Beg. Bal. Equipment (A) $3,200 $250 b) $45 ooz Cash (A) $300 b) $50e) $400 f) $220i) $470 k) $90 $520 $250 $600 $30 $30 $100 End. Bal. End. Bal. $335 End. Bal. $3,450 Accounts payable (L) $100 Beg. Bal. Notes Payable (Long-term) Beg. Bal. Common Stock (SE) Beg. Bal. $600 $200 $200 $7 $50 $250 End. Bal. $507 End. Bal. $200 End. Bal. Rent Expense (E) Retained Earnings (SE) Beg. Bal. Service Revenue (R) Beg. Bal. $1,500 Beg. Bal. $400 $6,200 $550 $45 End. Bal. $1,500 End. Bal. $6,795 End. Bal. $400

Interest Expense (SE) Prepaid Rent (A) $100 Beg. Bal. $0 Beg. Bal. Note Payable (Short-term) Beg. Bal. d) End. Bal. $500 $220 $720 o) $5 End. Bal. $5 End. Bal. $100 Income Tax Payable (L) Beg. Bal. Interest Payable (L) Beg. Bal. Beg. Bal. $150 ($6,000 x (6/24)] Prepaid Insurance (A) $0 s) $600 $450 $4 o) e) End. Bal. End. Bal. $5 End. Bal. Interest Revenue (SE) Beg. Bal. Deferred Revenue (L) Beg. Bal. $300 $100 $200 Income Tax Expense (E) Beg. Bal. $4 End. Bal. $304 End. Bal. $100 End. Bal. $200 Supplies (A) $500 m) Travel Expense (SE) $2,600 Beg. Bal. $207 Beg. Bal. Supplies Expense (SE) Beg. Bal. $200 m) $207 End. Bal. $407 $> End. Bal. $300 End. Bal. $2,600

Software (A) Salaries & Wages Payable (L) Beg. Bal. Beg. Bal. $0 $30 Salaries & Wages Expense (SE) Beg. Bal. $2,200 $30 $30 End. Bal. $2,260 $o $30 p) End. Bal. $30 End. Bal. $30 Amortization Expense (SE) Beg. Bal. Accumulated Amortization (A) Beg. Bal. Depreciation Expense (SE) Beg. Bal. $300 $40 End. Bal. $340 $5 $5 End. Bal. End. Bal. Accumulated Depreciation (A) Beg. Bal. $900 $40 End. Bal. $940 Unearned Service Revenue (L) Beg. Bal. $0 $400 End. Bal. $400 Beg. Bal. s) End. Bal. Insurance Expense (SE) $0 $150 $150