During its first month of operation the melvin

During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing,
completed the following transactions.
July 1 Began business by making a deposit in a company bank account of $90,000, in exchange
for 9,000 shares of $10 par value common stock.
July 3 Paid the current month's rent, $5,500.
July 5 Paid the premium on a 1-year insurance policy, $4,800
July 7 Purchased supplies on account from Little Company, $900.
July 10 Paid employee salaries, $3,300
July 14 Purchased equipment from Lake Company, $11,500. Paid $1,500 down and the balance was
placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1.
Note: Use accounts payable for the balance due.
July 15 Received cash for plumbing revenue for the first half of July, $7,700
July 19 Made payment on account to Lake Company, $500.
July 31 Received cash for plumbing revenue for the last half of July, $8,505
July 31 Declared and paid cash dividends of $600
Prepare journal entries to record the July transactions in the General Journal below.

This Sheet will be used for Requirements 2, 5, and 9.
Requirement #2:
Post the July journal entries to the following T-accounts and compute ending balances.
Cash (111) Revenue (411)
July 1 90,000 Jul 3 5,500 Jul-15 7,700
July 15 7,700 Jul 5 4,800 July-31 8,505
Jul 31 8,505
Jul 10 3300
Jul-14 1500 Bal 16,205
Jul-19 500
Jul-31 600
Bal 90,005
Prepaid Insurance (117) Rent Expense (511)
Jul-5 4,800 Jul-31 400 Jul-13 5,500
(Adj)
Bal 4,800
Adj Bal 4,400
Bal 5,500
Supplies (119) Salaries Expense (512)
Jul-7 900 Jul-31 375 July-10 3,300
(Adj)
Bal 900
Adj Bal 525
Bal 3,300
Equipment (144) Insurance Expense (513)
Jul 14 11,500 Jul-31 400
(Adj)
Bal 11,500
Adj Bal 400

Accumulated Depreciation-Equipment (145) Supplies Expense (514)
Jul-31 375
(Adj)
Bal 375
Accounts Payable (212) Depreciation Expense (515)
Jul 19 500 Jul 7 900 Jul-31 150
Jul 14 10000 (Adj)
Bal 10400 Adj Bal 150
Income Tax Payable (213) Income Tax Expense (516)
Common Stock (311)
Jul-1 90,000 Retained Earnings (312)
Bal 90,000
Dividends (313
July 31 600
Bal 600

Requirement #3:
Prepare a trial balance for July in the space below.
Melvin Plumbing Corporation
Trial Balance
July 31
Melvin Plumbing Corporation
Trial Balance
July 31
Account Debit Credit
Cash 90,005
Supplies 900
Prepaid Insurance 4,800
Equipment 11,500
Account Payable 10,400
Common Stock 90,000
Revenue 16,205
Rent Expense 5,500
Accumulated Dep- Equ
Dep Exp
Salaries Expense 3,300
Supply Expense
Income Tax Expense
Income Tax Payable
Insurance Expense
Dividends 600
116,605 116,605