Question

9) Student Painters Inc, began business on July 1. During their first month of operations, Student Painters had the following transactions. July 1 Received $39,000 of cash and issued common stock to shareholders. July 3 Purchased supplies of $200 and equipment of $3,100, both on account. July 5 Painted a house for a customer, who paid $1,600 in cash. July 7 Purchased land for cash of $27,000. July 11 Performed painting services for a customer, who was billed for $900. The customer promised to pay the first week of August. July 16 Paid for the equipment purchased on July 3. July 17 Received and paid phone bill for $170. July 18 Received $450 from a customer on account. (i.e. the customer was paying off an account receivable he owed to the company) July 22 Paid water bill of $190. July 29 Painted a house for a customer, who paid $1,400 in cash. July 30 Paid employee salaries of $2,400. July 31 Declared and paid cash dividends of $6,500. a) Show all journal entries Student Painters would have to make during the month of July. (Hint: it might be easier to do parts (a) and (b) concurrently.) b) Post all journal entries from (a) into the T-accounts c) Prepare Student Painters' Trial Balance at July 31.

Answer 1

Solution

On the basis of available information, required are given below,
Solution Student Painters Inc Journal. ("Dr" ("64 39,000 200 3.200 Jury L.F. Amount (4) Amour Particulas 39,0001 July .. Cash Ac..... De To, Common Stock Afc (Being cach received and common Stock freued to shareholdeos) Julys. Supplies. Afc . Dr. 8.100. Equipment Alc... Da To, Acobenda Payable Ale Being Lullis duid equipment bought a Otrint) Jul 1,600 Corah Mc!'. ':De "To, Service Reventeet IL1600 (Being cabreceived som painting classe) July 7 Laud fcio.. . 27.000 To, Cash Alc (Being loud burchased for cash) Astounis Receivable Afe n To, Service Revenue Afc ffeing brainking perniczeperformed on acenant) __July 16 Adenuinlafayare Afe ..Br. 3,100 To.Caen A 3.100 (being quibunt due on equilamentewwa pois)! Julyst. Telephone expenses. Afe...... To. Comhalen Being Tembohone bill waspaidin.com) July 18. Chc... De "To, Acupunta Receivedla Afc (Being Crabteived from a Customer from whom annum duas due) Water Billenbersis Ale....Br. To, Cash Ale Being Codes Bie baid) Canan AleD Toy Seks nice. Reserwe. Alc. (Being Cash received from painting Arosko) Salodies Afe..! 2.100 To, Cash Ale 2,400 (Being Saladies baid-to-employece). 14 . 60 1,400 1,401

Date Particulars LE Amount (d) Amount (p) - bole July 31. Dividend Alc... ) 6.600.- 6 To, Cash Alc. (Beingdiridend paid to shoreboldegs) - Student Painters Inc.- Ledger Awesenli # Cooh Account Cou Date Parkiculars_ _3.6. Amount/t) Date Porkoutas 5:1. Amount July! To Connon Stock Ac_ 89.000. July 7 By Land Ace 27.000 Julya To Savie Revenue Alc 1,600.-July6 By Accounts Payabledde 8.400. Julyje. To decounts Recriveb. Cl. Afc 460 Juta su By Telephone fupechosoft July 9 To Service Revenue Ac +4400 July 22 Boy Watten Bini Expemans af 190 - Jugen Siddlonia 12,400 Julyst My Binodontic 6.800. July 3, By Balanced 3,090, 42,480 42,450 July 31. To Balance boldl 3,090 ' - Date Particulars Sty 21 To Balance of Common Stock Account Amounta) Date Particulars 39.000. July By Coah AlC.------- 39,000 Tellys BA Balamce bold JF Amount(*> 99.000. 39,000 39.000 I Date. Partioulass July To Coahtle Julys to Balance eld Account for alle. Aroomt. - 5.. Amount) Date Particulars - 2.100 Turbyg By Supplies Afe vily s by equipment Afc- 8.900 Julyén By Balance bydl G. IF Amount (4) 200 3.100 3.800 200

Dorte Particulars Julys To Ahenunti layaked Supplies Auspunt J.F. Amount (+) Dente Parabiculars _200Jaya By Balance old 200 July 31. to Balance ble 1.2001 Date Parabeulom July 3 To Aununló Payable. Afe July 21, To Balanze.bijel SUM 3.DK Dale Particular July 22, To Belauze obal 1900 3.900 - Date! Paskuistare - July 7 To Coahale equipments Anebunt J.E. Shaun (4) Dale Parkeelass _BADD_July 31. Boy balance eje 8.100 8.460 L bervice Revenue Amount. Je Awoyuki) Dahe. Parhaelaso f beldis - 3,900. July 5 by Cornale 14,600 July 1 My Albuwis Receivableffe July 29 by Cophale 8,900 Jwyga By Balance bold 2.700 laude Aanebut Sf. Allow Date Parkentams Jr. Ammattil) 24,000 July 21 By Balore.cfel A7,000 27.000 22. Account Receivable Arnout 5. Amoet (4) Date! Partientes Se Amament) 900 Joly By Coon Ate l on ylyst Bi Balance fel 400 900 I Teleb bone fabenses Aust_ Je Amount(t) Date. Particulare. D Julyse By Balance of 27.000 Tuys! To Balancs bel - Date Parkeulan July 1 To Service Revenue. Ale July 21, To Balance by Date Parkuloos. July Le To Cachate H ITO Jillys To Balance biele 10 Date Particulas July 22 To Comharc Wates Big Faberete. Aurrunt 35. Arnet (9) Dale Paakeukens 190 July 4 By Balance sid 190 1901 5.f. Anne vent (1) PO 190 Truby 31 to Balance bid

Date Passion balang July 2o To Cooh Alo Salaries Account: - JE Amouf) Date - Particuloss 2.400 July 31 By Bolanied 2.400 5.6 km Delft 2.400. July 31. to Balance bld 2.400 2400 Date Parienlar Dindend Account Keulas --Jf. Amounted) Dante - Particulos July31 To Cook Afc + 6600_July 31 By Balance eld July 31 To Balance bpl I 6.500 3.f. Amour -6500 6.500 6,500 -- - - Student Painters Pne Trial Balance opal Julyshe Particelors Amount (o) Amount (4) 8,090 89,000, 200 200 3.100 Cash Alc Common átockale Accounts payable Ate Supplieste fquipment ac Service Revenue ata and she Acercenka Receivablette Telephone Babemora Afu Wateo Bill. Exbemeente Salariesafe 3900 27,000 450 190 Dividend Afc 2.400 6.500 TOTAL 5 100 149.1000