Question

Instructions Chart of Accounts General Journal T Accounts Unadjusted Trial Balance Instructions Wickers Restoration Services had the following transactions on May. 1. 2. 3. 4. 5. Received $48,000 from sale of common stock. Paid rent on office for the month, $880. Purchased supplies on account, $1,750, Earned fees, receiving cash, $12,600. Paid creditor on account, $1,000 Paid automobile expenses for month, $375, and miscellaneous expenses, $250. Paid office salaries for the month, $3,900, Earned fees which the customer will pay next month, $2,400. Determined that the cost of supplies used was $280. Paid dividends, $2,400 6. 7. 8. 9. 10 a. Prepare the journal entries for the above transactions on May 31. Refer to the Chart of Accounts for exact wording of account titles. b. Prepare T accounts for each account used and post the journal entries to these accounts, placing the appropriate number to the left of each amount to identify the transactions. For grading purposes enter transactions in sequential order. Determine the correct ending balance. The ending balance label is provided on the left side of the account even when the ending balance is a credit. The unused cell on the balance ine should be left blank c. Prepare an unadjusted trial balance as olay 31 d. Determine the net income for May e. Determine the retained earnings at the end of May, assuming this was the first month of business Previc

Answer 1

Journal	Accounting Equation
Sl. No.	Date	Description	Post Ref.	Debit	Credit	Asset	Liabilities	Equity
1		Cash		48000		48000
Common Stock		48000			48000
2		Rent Expense		880				-880
Cash		880	-880
3		Supplies		1750		1750
Accounts Payable		1750		1750
4		Cash		12600		12600
Fees Earned		12600			12600
5		Accounts Payable		1000			-1000
Cash		1000	-1000
6		Automobile Expenses		375				-375
Miscellaneous Expenses	250				-250
Cash		625	-625
7		Wages Expense		3900				-3900
Cash		3900	-3900
8		Accounts Receivable		2400		2400
Fees Earned		2400			2400
9		Supplies Expense		280				-280
Supplies		280	-280
10		Dividends		2400				-2400
Cash		2400	-2400

T Accounts (Numbers are used as instructed in Question)

Cash
1	48000	2	880
4	12600	5	1000
		6	375
		6	250
		7	3900
		10	2400
Bal	51795
Accounts Receivable
8	2400
Bal	2400
Supplies
3	1750	9	280
Bal	1470
Accounts payable
5	1000	3	1750
Bal	750
Common Stock
		1	48000
Bal	48000
Dividends
10	2400
Bal	2400
Fees Earned
		4	12600
		8	2400
Bal	15000
Rent Expense
2	880
Bal	880
Automobile Expense
6	375
Bal	375
Wages Expense
7	3900
Bal	3900
Supplies Expense
9	280
Bal	280
Misc. Expense
6	250
Bal	250

3 Trial Balance

Trial Balance
	Account Title	Debit	Credit
1	Cash	51795
2	Accounts Receivable	2400
3	Supplies	1470
4	Accounts Payable		750
5	Common Stock		48000
6	Dividends	2400
7	Fees Earned		15000
8	Rent Expenses	880
9	Automobile Expenses	375
10	Wages Expenses	3900
11	Supplies Expenses	280
12	Miscellaneous Expenses	250
	Total	63750	63750

4 Net Income: 9315

5 Retained Earnings: 6915