Question

Clipboard Font Alignment Number H56 B A С E G M D H P N K O 1 Requirement #1: 2 During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation 3 completed the following transactions 4 5 July 1 Began business by making a deposit in a company bank account of $60,000, in exchange B for 6,000 shares of $10 par value common stock 7 8 July 3 Paid the current month's ront, $3,500 9 10 July 5 Paid the premium on a 1-year insurance policy. $4,200 11 12 July 7 Purchased supplies on account from Little Company, $1,000 13 14 July 10 Paid employee salaries, $3,500 15 16 July 14 Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was 17 placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1 18 Note: Use accounts payable for the balance due 19 20 July 15 Received cash for preparing tax returns for the first half of July, $8.000 21 22 July 19 Made payment on account to Lake Company, $500 23 24 July 31 Received cash for preparing tax returns for the last half of July, $9,000 25 26 July 31 Declared and paid cash dividends of $600 27 28 29 Prepare journal entries to record the July transactions in the General Journal below. Use the following account names for journal entries. 30 31 General Journal Chart of Accounts Account Title (Normal Balance) Descrition Armin Namel nabit Credi Instructions Journal Entries General Ledger Trial Balance Adjusting Entries Adjusted Trial Balance Financial Statements Closing Entries Type here to search O i

Answer 1

JOURNAL ENTRIES IN THE BOOKS OF QUICK TAX CORPORATION

DATE	DETAILS	DEBIT	CREDIT
JULY 1	BANK	60000
	SHAREHOLDER'S EQUITY		60000
	(BUSINESS STARTED WITH BANK BALNACE OF $60000 IN RETURN OF IT 6000 COMMON SHARE ISSUED)
JULY 3	RENT EXPENSE	3500
	BANK		3500
	(RENT EXPENSE OF THE MONTH PAID)
JULY 5	INSURANCE EXPENSE	4200
	BANK		4200
	(INSURANCE EXPENSE FOR THE YEAR IS PAID) NOTE(ONLY FOR KNOWLEDGE):-ADJUSTMENT ENTRY IN YEAR END WILL BE DONE
JULY 7	SUPPLIES	1000
	ACCOUNT PAYABLES		1000
	(SUPPLIES PURCHASED ON ACCOUNT)
JULY 10	SALARIES	3500
	BANK		3500
	(SALARY FOR THE MONTH IS PAID)
JULY 14	EQUIPMENT	10000
	BANK		2500
	ACCOUNT PAYABLE		7500
	(ASSET PURCHASED 25% PAID REMANINNG WILL BE PAID IN INSTALLMENTS OF $500 STARTING FROM 8/1)
JULY15	CASH	8000
	REVENUE		8000
	(INCOME FROM OPERATIONAL WORK)
JULY 19	PREPAID EXPENSE	500
	BANK		500
	(ASSET INSTALLMENT PAID IN ADVANCE WHICH WILL DUE ON 8/1)
JULY 31	CASH	9000
	REVENUE		9000
	(INCOME FROM OPERATIONAL WORK)
JULY 31	DIVIDEND	600
	CASH		600
	(DIVIDEND DECLEARED AND PAID)