Question

Instructions:

This project consists of a set of transactions for the month of June for LMK Reach Consulting, which began business on June 1, 2018.

Prepare the following for the period ended June 30^th, 2018:

A)- prepare Journal Entry

B)- prepare General Ledger

C)- prepare a Trial Balance     

D)- prepare the Income Statement

E)- prepare Balance Sheet

Note: Everything is from the same consulting agency " LMK Reach Consulting "

This project consists of a set of transactions for LMK Reach Consulting, which began business on June 1, 2018. LMK Reach Consulting is a tax consulting firm based in Brooklyn.

The owner of LMK Reach Consulting invested Capital of $420,000 into LMK Reach

The Company bought a building for office use at a price of $115,000; $45,000 was paid in cash and a promissory note of $70,000 remainder balance signed with Capital One Bank.

Bought equipment of $60,000 on account.

LMK provide service of $450,000 to LFJ Accounting Services on account.

$5,700 cash was paid for advertising in the New York Newspaper to run throughout the month.

The company received Phone bill of $11,800 and Gas bill $23,800 for the month of June, but paid in August.

Computer purchased on credit from computer solutions $30,000

LMK company paid rent for June, $ 7,500.

A cash service of $250,000 was provided to RFJ Limited.

Purchased office supplies costing $17,600 on credit.

Received $125,000 cash in advance (deposits) from customers for services to be performed in late July.

LMK purchased cash service of $116,500.

Paid $5,000 on account for the equipment purchased

Paid utility bills (water, electric, telephone) for the month totaling $4,600

Paid Staff salaries of $45,000

Provided $54,100 worth of services to its customers. The customer paid $32,900 and promised to pay the remaining balance in the following month

Received $11,700 from customers for payments on their accounts.

The owner of LMK withdraw $15,000 for personal use

LMK purchased service supplies on account amounting to $75,500.

Paid cash of $6,000 premium for a 1-year insurance policy.

Answer 1