Question

This Question: 10 pts 31 of 35 (6 complete) events that occurred during May, the company's first month Walsh & Meyers CPAS decided to open ts own tax practice, Tax Help, Inc. The following transactions are th (Click the icon to view the transactions.) Requirement 1 Give the journal entry for each transaction Set u the required T-accounts and post the entries to these accounts. Prepare an unadjusted trial balance Requirement 1. Give the journal entry for each transaction. Post the entries to T-accounts. Prepare an unadjusted trial balance. Begin by giving the journal entry for each transaction. (Record debits first, then credits. Explanalions will appear on the st line of the entry, If no entry is reauired, select No entry" n the first line of the Accounts and Explanations column and leave the rest of the table blank. ) May 1 Walsh and Meyers each donated $60,000 cash in exchange for common stock They (Tax Help, Inc.) also signed a note with Everyday Bank $110,000 Prepare a compound entry Ref. Date Accounts and Explanation Credit Debit May 1-1 More Info donated $60.000 cash i also signed a note with Everyday Bank for $110 000 May xchange common stock They 2 Tax Help paid $24,000 prepaid rant for the first year May 2 Tax Help paid $24.000 prepaid rent for the first year 11 Office equipment was purchased on account for $13,500. 16 effective un ased insurance for two years with $5,500 cash. The policy was Date Accounts and Explanation Ref. Dobit Credit 18 discolored piece of office equipment anived and the supplier agreed to remove $3.200 fram Tax Help's account May 1-2 furniture on 9ale worth $8,000 on account. 25 Tax Help paid off balance owed on the equigment. 28 30 An office manager was hirad at a rate of $150 a day. The start date is June 1. May 11: Office equipment was purchased on account for $13,500. Date Debit Ref. Accounts and Explanation Credit May 1-3 11 May 16: The company purchased insurance for two years with $5,500 cash. The policy was effective June 1 Date Accounts and Explanation Credit Ref. Debit May 1-4 16 May 18: A discolored piece of office equipment arrived and the supplier agreed to remove $3,200 from Tax Help's account. Date Debit Credit Ref. Accounts and Explanation May 1-5 18

Answer 1

Date	Accounts and Explanation	Debit	Credit
May-01	Cash	230000
	Common stock		120000
	Notes payable		110000
	(To record issue of common stock and note)
May-02	Prepaid rent	24000
	Cash		24000
	(To record rent paid in advance)
May-11	Office equipment	13500
	Accounts payable		13500
	(To record office equipment purchased on account)
May-16	Prepaid insurance	5500
	Cash		5500
	(To record insurance prepaid for 2 years)
May-18	Accounts payable	3200
	Office equipment		3200
	(To record credit by supplier)
May-25	Office furniture	8000
	Accounts payable		8000
	(To record office furniture purchased on account)
May-28	Accounts payable ($13500 - $3200)	10300
	Cash		10300
	(To record payment on account)
May-30	No Entry

Cash					Prepaid Rent
May-01	230000	24000	May-02		May-02	24000
		5500	May-16
		10300	May-28
May 31 bal.	190200				May 31 bal.	24000
Prepaid Insurance					Office Equipment
May-16	5500				May-11	13500	3200	May-18
May 31 bal.	5500				May 31 bal.	10300
Office Furniture					Accounts Payable
May-25	8000				May-18	3200	13500	May-11
					May-28	10300	8000	May-25
May 31 bal.	8000				May 31 bal.		8000
Notes Payable					Common Stock
		110000	May-01				120000	May-01
May 31 bal.		110000			May 31 bal.		120000

Walsh & Meyers,CPA
Unadjusted Trial Balance
May 31
	Debit	Credit
Cash	190200
Prepaid rent	24000
Prepaid insurance	5500
Office equipment	10300
Office furniture	8000
Accounts payable		8000
Notes payable		110000
Common stock		120000
Totals $	238000	238000