Question

Problem 2-3A 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). Credit Pharoah Company Trial balance December 31, 2018 Debit Cash $ 7,000 Accounts Receivable 15,300 Supplies 13,200 Prepaid Rent 1,000 Equipment 19,200 Accounts Payable Common Stock Retained Earnings $55,700 $12,900 31,000 11,800 $55,700 Summarized transactions for January 2019 were as follows. 1. 2. 3. 4. Advertising costs, paid in cash, $1,110. Additional supplies acquired on account $3,700. Miscellaneous expenses, paid in cash, $1,930. Cash collected from customers in payment of accounts receivable $12,240. Cash paid to creditors for accounts payable due $12,650. Repair services performed during January: for cash $6,120; on account $8,660. Wages for January, paid in cash, $2,270. Dividends during January were $2,670. 5. Cash 6. 7. 8.

Answer 1

No. Account Titles and Explanation Debit Credit 6 Cash Accounts Receivable Service Revenue $ 6,120 $ 8,660 $ 14,780 $ 2,670 Dividends Cash $ 2,670

1 Bal. Advertising Expense $ 1,110 | $ 1,110 Bal. Cash $ 7,000 $ 12,240 $ 6,120 $ 1,110 $ 1,930 $ 12,650 $ 2,270 $ 2,670 Bal. $ 4,730 Bal. $ 12,240 Accounts Receivable $ 15,300 4 $ 8,660 $ 11,720 Bal.

Pharoah Company Trial Balance January 31, 2019 Debit Credit Cash $ 4,730 Accounts Receivable $ 11,720 Supplies $ 16,900 Prepaid Rent $ 1,000 Equipment $ 19,200 Accounts Payable $ 3,950 Common Stock $ 31,000 Retained Earnings $ 11,800 Dividends $ 2,670 Service Revenue $ 14,780 Advertising Expense $ 1,110 Miscellaneous Expense $ 1,930 Salaries and Wages Expense $ 2,270 Totals $ 61,530 $ 61,530