Question

57.100 Transaction Analysis and Trial Balance Pam Elark nwns Artsy Graphics, a fimm providing designs to acivertisers and market analys. Only the business gonerallenger shound the following normal account balances: $5,000 Accounts Payable Accounts Receivable 10.200 Nctes Payable 4.200 Comron Stock 2.000 Retaired Farrings Teral Assets $13.500 Total Liabiities and Stockholders' Equity $13.500 The folowing transactions accurred during the march of luy: 1 Paruyrer, 3510. 2 Collected 57,100 un accent from customers. 3 Paid Stannisalmen die on the $3.500 naninterest-bearing note payahl 4 Biled customers for design services rencered on account, $19.100. 5 Rendered design services and collected from cash customers $1.200 6 Paid $1,400 acredcrsonerount. 7 Collected 5 12.750 un account for customers. & Paid callery Service for delivery of graphics to commercial firms, 3650 9 Paldjuy salanes $5.300. 10 Received invice foruya tsing expersa mn be paid in August SECO 11 Parc utilties for July $250. 12 Paid Stockholders a dividend of $2.000 cash 13 Received invnice to supplies and in to be paid in August, 52,260. 14 Purchased computer for $7.000 cast to be used in business starting next month Bered .. Secup accounts for the general ledger with July i balances and enter the beginning balances. Also provide the following accounts: Equipment Service Fees Earned; Rent Expense; Salaries Expenser Delivery expense: Advertising Expenser utilities Expense; Supplies Expense and Dividencs. Prepare journal entries listed transactions in the appropriate accounts. b. Prepare a cria balance as of July 21. Jous Entries arounts Trial Balance Accounts Receivable Equipment Notes Payable Pee Ral Rep RO 0 Bal 121 Balo --- Ocece Accounts Payable Common Stock Dividends Retained Earnings Bes0 Der Bal (11) 0 Вес (6) (10) (131 0 123 Bal Service For Earned Rent Expense Salaries Eponse Delivery Expense Utilities Expense Supplies Expense Advertising Expense 101 00 Bal 0 0 Balo

Answer 1

Requirement a:

General Journal

Ref.	Description	Debit	Credit
1	Rent expense	$510
	Cash		$510
	[To record payment of rent expense]
2	Cash	$7,100
	Accounts receivable		$7,100
	[To record collection form customers]
3	Notes payable	$1,800
	Cash		$1,800
	[To record payment of notes payable]
4	Accounts receivable	$18,100
	Service fees earned		$18,100
	[To record customer billings]
5	Cash	$1,200
	Service fees earned		$1,200
	[To record service fees rendered and collected]
6	Accounts payable	$1,400
	Cash		$1,400
	[To record payments to creditors]
7	Cash	$12,750
	Accounts receivable		$12,750
	[To record collections from customers]
8	Delivery expense	$650
	Cash		$650
	[To record payment of delivery expense]
9	Salaries expense	$5,300
	Cash		$5,300
	[To record salaries expense]
10	Advertising expense	$600
	Accounts payable		$600
	[To record advertising expense to be paid following month]
11	Utilities expense	$250
	Cash		$250
	[To record payment of utilities expense]
12	Dividends	$2,000
	Cash		$2,000
	[To record payment of dividends]
13	Supplies expense	$2,260
	Accounts payable		$2,260
	[To record supplies expense for the month]
14	Equipment	$7,000
	Cash		$7,000
	[To record purchase of computer]

T-Accounts:

Cash					Service fees earned
Beg. Bal.	$6,800				4		$18,100
1		$510			5		$1,200
2	$7,100				Bal.		$19,300
3		$1,800
5	$1,200				Rent expense
6		$1,400			1	$510
7	$12,750				Bal.	$510
8		$650
11		$250			Salaries expense
12		$2,000			9	$5,300
14		$7,000			Bal.	$5,300
Bal.	$14,240
					Delivery expense
Accounts receivable					8	$650
Beg. Bal.	$10,700				Bal.	$650
2		$7,100
4	$18,100				Advertising expense
7		$12,750			10	$600
9		$5,300			Bal.	$600
Bal.	$3,650
					Utilities expense
Equipment					11	$250
14	$7,000				Bal.	$250
Bal.	$7,000
					Supplies expense
Notes payable					13	$2,260
Beg. Bal.		$4,200			Bal.	$2,260
3	$1,800
Bal.		$2,400
Accounts payable
Beg. Bal.		$2,100
6	$1,400
10		$600
13		$2,260
Bal.		$3,560
Common stock
		Beg. Bal.	$2,000
		Bal.	$2,000
Retained Earnings
		Beg. Bal.	$9,200
		Bal.	$9,200
Dividends
12	$2,000
Bal.	$2,000

Requirement b:

Unadjusted Trial balance
Account title	Debit	Credit
Cash	$14,240
Accounts receivable	$3,650
Equipment	$7,000
Accounts payable		$3,560
Notes payable		$2,400
Common stock		$2,000
Retained Earnings		$9,200
Service fees earned		$19,300
Rent expense	$510
Salaries expense	$5,300
Delivery expense	$650
Advertising expense	$600
Utilities expense	$250
Supplies expense	$2,260
Dividends	$2,000
Total	$36,460	$36,460