Journalizing transactions, posting to T-accounts, and preparing a trial balance [45-60 min] Use the chart of accounts you created in Chapter 1 (and add accounts where necessary). All of the first month’s activity for Shine King Cleaning is as follows.
Nov1 | Evan Hudson deposited $35,000 in the business account. Also on this date, Evan transferred his truck title, worth $8,000, to the business. Evan received 200 shares of no-par common stock in return. |
2 | Wrote a check for $2,000 to Pleasant Properties. In the “for” area of the check, it states “November through February Rent.” (Debit Prepaid rent) |
3 | Purchased business insurance policy for $2,400 for the term November 1, 2012, through October 31, 2013, and paid cash. (Debit Prepaid insurance) |
4 | Evan went to the Cleaning Supply Company and purchased $270 of cleaning supplies on account. The invoice is due 20 days from the date of purchase. |
5 | Purchased on account an industrial vacuum cleaner from Penny Purchase costing $1,000. The invoice is payable on or before November 25. |
7 | Purchased a computer and printer costing a total of $1,200. A check for the same amount to the computer store was written on the same date. |
9 | Performed cleaning services on account for Pierre’s Wig Stand in the amount of $3,000. |
10 | Deposited Pierre’s check for $100 in the bank. |
15 | Wrote check payable to Eric Ryder for $500 for contract labor. |
16 | Received $3,600 for 1 year contract beginning November 16 for cleaning services to be provided to the Sea Side Restaurant. Contract begins November 16, 2012, and ends November 15, 2013. (Credit Unearned service revenue) |
17 | Provided cleaning services for Tip Top Solutions for $800. Tip Top paid with a check. |
18 | Received water and electric bill for $175 with due date of December 4, 2012. |
20 | Borrowed $40,000 from bank with interest at rate of 9% per year. |
21 | Deposited check from Pierre’s Wig Stand for $900, with the notation “on account.” |
25 | Wrote check to Penny Purchase for invoice #1035 in the amount of $500. |
29 | Wrote check payable to St. Petersburg News for $100 for advertising. |
30 | Paid dividends to Evan Hudson of $600. |
Requirements
1. Journalize transactions as required from the activity data.
2. Post journal entries to T-accounts and calculate account balances.
3. Prepare the trial balance at November 30.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.