Question

Transaction Analysis and Trial Balance Mary Aker opened a tax practice on June 1. The following accounts will be needed to record her transactions for June: Cas Library, Office Furniture and Fixtures; Accounts Payable; Notes Payable; Common Stock; Dividends; Professional Fees Earl Advertising Expense; Utilities Expense; and Interest Expense. The following transactions occured during the month of June June 1 Aker opened a business checking account at a local bank, investing $16,300 in her practice in exchange for common stock 2 Purchased office furniture and fixtures for $10,100, paid $3,100 cash, and gave a note payable for the balance. 3 Purchased books and software for a tax library on account, $4,000. 4 Purchased office supplies for cash, $860. 5 Paid rent for June, $1,050. 6 Returned $600 of books with defective bindings. The return reduced 7 Billed clients for professional services rendered, $7,900. 8 Paid $2,000 on account for the library items purchased on June 9 Collected $6,200 on account from clients billed on June 7. 10 Paid June salaries, $3,200. 11 Received invoice for June advertising, to be paid in July, 12 Paid stockholders $1,100 cash as a dividend. 13 Paid utilities for June, $460. 14 Paid interest for June on note payable $90. Required

Answer 1

A) General entries in the attachment

12 June dividend All $1loo To cash Al (keng divided paid ) - $1loo 113 The $460. Utlity Eap ALC Tol cen Al Beug utlikiespaid) $460 14 Jue $ 90 $90 Int Exp Al To cash Int paid on Notes) payable

Statement showing Cash Balances ( 1)

Particular	Amount (DR)	Particulars	Amount ( cr)
2) office furniture	3100	1)common stock	16300
4) office supplies	860	9) fees Earned	6200
5) rent Paid	1050
8) library books	2000
10) salaries	3200
12) dividend	1100
13 ) Utility exp	460
14 interest exp	90
Balance	10640

statement showing Account Receivable (2)

Particular	Amount (DR)	Particulars	Amount ( cr)
9)cash	6200	7) fees Earned	7900
balance	1700
(7900-6200)

statement showing Accounts payable (3)

Particular	Amount (DR)	Particulars	Amount ( cr)
3) library	4000	6) Library	600
11) advertising	600	8) cash	2000
		balance	2000
		(4600-2600)

statement showing office Furniture (4)

Particular	Amount (DR)	Particulars	Amount ( cr)
balance	10100	2) cash	3100
		2) note payable	7000

statement showing Notes Payable (5)

Particular	Amount (DR)	Particulars	Amount ( cr)
3)office furtinure	7000
		balance	7000

statement showing tax liabrary (6)

Particular	Amount (DR)	Particulars	Amount ( cr)
account payable	600	account payable	4000
balance	3400

b)Trail Balance as of june 30 of mary aker

particulars	debit ($)	Credit($)	working
cash	10640		balance taken from cash statement no 1
account receivable	1700		balance taken from statement no 2
account payable		2000	balance taken from statement no 3
office supplies	860
tax library	3400		balance taken from statement no 6
office furniture	10100		balance taken from statement no 4
notes payable		7000	balance taken from statement no 5
common stock		16300
dividend paid	1100
utility exp	460
interest exp	90
advertising exp	600
salaries exp	3200
rent exp	1050
professsional fee		7900
Total	33200	33200