Question

Given the following transactions for Expert Consulting Corporation during the month of June, prepare the:

a. Journal Entries

b. Ledger (T-Accounts) balances and

c. A Trial balance as of December 31, 2019

a. Owner invested $43,000 cash and truck with a value of $24,250 into the business

b. The corporation purchased Factory Plant costing $37,350 by paying $16,000 down and signing a note payable for the remainder

c. The corporation purchased supplies on account, $8,750

d. The corporation rented office space paying one month's rent, $3,725

e. The corporation performed services for a customer on account, $5250

f. The corporation performed services for a customer and immediately collected $3,900, cash

g. The corporation paid employees' salaries of $11,800 and utilities of $10,050

h. The corporation paid cash dividend of $11,650 to the owners

Answer 1

There is some error in question, as cash balance comes out to be negative, still i have answered with given data

a.

	Account Titles	Debit	Credit
a	Cash	$            43,000
	Truck	$            24,250
	Capital		$              67,250
	(Invested capital in business)
b	Factory Plant	$            37,350
	Cash		$              16,000
	Notes Payable		$              21,350
	(Purchase of factory plant)
c	Supplies	$              8,750
	Accounts Payable		$                8,750
	(Purchase of Supplies on account)
d	Rent Expense	$              3,725
	Cash		$                3,725
	(Paid rent for one month)
e	Accounts Receivable	$              5,250
	Service Revenue		$                5,250
	(Performed services on account)
f	Cash	$              3,900
	Service Revenue		$                3,900
	(Performed services for cash)
g	Salaries Expense	$            11,800
	Utilities Expense	$            10,050
	Cash		$              21,850
	(Cash paid for salaries and utilities)
h	Dividend	$            11,650
	Cash		$              11,650
	(Paid dividend to owners)

b.

Cash					Accounts Receivable
Beginning Balance					Beginning Balance
a.	43000	16000	b.		e.	5250
f.	3900	3725	d.
		11800	g.
		10050	g.
		11650	h.
Ending Balance		6325			Ending Balance	5250
Supplies					Truck
Beginning Balance					Beginning Balance
c.	8750				a.	24250
Ending Balance	8750				Ending Balance	24250
Factory Plant					Notes Payable
Beginning Balance					Beginning Balance
b.	16000						21350	b.
b.	21350
Ending Balance	37350				Ending Balance		21350
Accounts Payable					Capital
Beginning Balance					Beginning Balance
		8750	c.				43000	a.
							24250	a.
Ending Balance		8750			Ending Balance		67250
Service Revenue					Salaries Expense
Beginning Balance					Beginning Balance
		5250	e		g.	11800
		3900	f
Ending Balance		9150			Ending Balance	11800
Utilities Expense					Dividend
Beginning Balance					Beginning Balance
g.	10050				h.	11650
Ending Balance	10050				Ending Balance	11650

Rent Expense
Beginning Balance
d.	3725
Ending Balance	3725

c.

Account Titles	Debit	Credit
Cash		6325
Accounts Receivable	5250
Supplies	8750
Truck	24250
Factory Plant	37350
Accounts Payable		8750
Notes Payable		21350
Capital		67250
Dividend	11650
Service Revenue		9150
Rent Expense	3725
Salaries Expense	11800
Utilities Expense	10050
Total	112825	112825