Question

Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.

Problem 2-3A (Part Level Submission) Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month. Transactions on May 1: 1. Jay Bradford invested $41,000 cash in the company, as its sole owner. 2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,600 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $20,000 cash in advance for the first year. 4. Purchased furniture and equipment costing $33,300. A cash payment of $12,000 was made immediately; the remainder will be paid in 6 months. 5. Paid $2,000 cash for a one-year insurance policy on the furniture and equipment. Transactions during the remainder of the month: 6. Purchased basic office supplies for $500 cash. 7. Purchased more office supplies for $1,200 on account. 8. Total revenues earned were $21,300-$8,300 cash and $13,000 on account. 9. Paid $500 to suppliers for accounts payable due. 10. Received $3,400 from customers in payment of accounts receivable. 11. Received utility bills in the amount of $300, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling $5,200.

Just need help fixing those T accounts

Answer 1

In the Question , need to fix ONLY 3 accounts T account . Please see below with individual Transaction reference Number . Any doubt , please drop me message

Thank you  

	Complete Journal Entries
Transaction No	Details	Debit($)	Credit($)
1	Cash	41,000
	Owners Capital		41,000
	( Investment in company- Cash Investment )
2	2 person hired on Salary basis - Their Salary not yet due so NO Journal Entry
3	Prepaid Rent	20,000
	cash		20,000
	( Signed 2 year rental Agreement on a Warehouse)
4	Equipment	33,300
	Cash		12,000
	Account payable		21,300
	( purchased furniture , cash paid immeduate $12k and balance will pay 6 months later
5	Prepaid Insurance	2,000
	Cash		2,000
	( paid Insurance One Year in advance )
6	Office Supplies	500
	Cash		500
	Purchase basic office supplies)
7	Office Supplies	1,200
	Account payable		1,200
	Purchase More office supplies)
8	Cash	8,300
	Account Receivable	13,000
	revenue		21,300
	( recorded revenue - cash and on account of credit )
9	Account payable	500
	cash		500
	( paid money on account payable dues)
10	Cash	3,400
	Account Receivable		3,400
	collection from customers
11	Utility Expenses	300
	Account payable		300
	( Accruing Utility Expense - payable in future)
12	Salary	5,200
	cash		5,200
	( transaction number 2 - No entry accounted now salary paid of 2 employees -$2.6k *2)

Major 3 T account required
Transaction Ref No	Cash $	Dr/Cr	Cumulative Balance $	Dr/Cr
1	41000	Dr	41000	Dr
3	20000	Cr	21000	Dr
4	12000	Cr	9000	Dr
5	2000	Cr	7000	Dr
6	500	Cr	6500	Dr
8	8300	Dr	14800	Dr
9	500	Cr	14300	Dr
10	3400	Dr	17700	Dr
12	5200	Cr	12500	Dr
So Closing Cash Balance $12500
Transaction Ref No	Account receivable $	Dr/Cr	Cumulative Balance $	Dr/Cr
8	13000	Dr	13000	Dr
10	3400	Cr	9600	Dr
So Closing Account Receivable Balance $9,600
Transaction Ref No	Account Payable   $	Dr/Cr	Cumulative Balance $	Dr/Cr
4	21300	Cr	21300	Cr
7	1200	Cr	22500	Cr
9	500	Dr	22000	Cr
11	300	Cr	22300	Cr
So Closing Account Payable Balance $22,300