Journalizing, Posting, and Preparing a Tamil Balance
Trafflet Enterprises incorporated on May 3, 2011. The company engaged in the following transactions during its first month of operations:
May 3 | Issued capital stock in exchange for $800,000 cash. |
May 4 | Paid May office rent expense of $ 1,000. |
May 5 | Purchased office supplies for $400 cash. The supplies will last for several months. |
May 15 | Purchased office equipment for $8,000 on account. The entire amount is due June 15. |
May 18 | Purchased a company car for $27,000. Paid $7,000 cash and issued a note payable for the remaining amount owed. |
May 20 | Billed clients $32,000 on account. |
May 26 | Declared a $5,000 dividend. The entire amount will be distributed to shareholders on June 26. |
May 29 | Paid May utilities of $200. |
May 30 | Received $30,000 from clients billed on May 20. |
May 31 | Recorded and paid salary expense of $14,000. |
A partial list of the account titles used by the company includes:
Cash | Dividends Payable |
Accounts Receivable | Dividends |
Office Supplies | Capital Stock |
Office Equipment | Client Revenue |
Vehicles | Office Rent Expense |
Notes Payable | Salary Expense |
Accounts Payable | Utilities Expense |
a. Prepare journal entries, including explanations, for the above transactions.
b. Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3-8 on page 108).
c. Prepare a trial balance dated May 31, 2011. Assume accounts with zero balances are not included in the trial balance.
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.