During its first month of operation the Melvin Plumbing Corporation which

During its first month of operation the melvin

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During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbingcompleted the following transactions.July 1Began business by making a deposit in a company bank account of $90,000, in exchangefor 9,000 shares of $10 par value common stock.July 3Paid the current month's rent, $5,500.July 5Paid the premium on a 1-year insurance policy, $4,800400 a monthJuly 7Purchased supplies on account from Little Company, $900.July 10Paid employee salaries, $3,300July 14Purchased equipment from Lake Company, $11,500. Paid $1,500 down and the balance wasplaced on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/Note: Use accounts payable for the balance due.July 15Received cash for plumbing revenue for the first half of July, $7,700July 19Made payment on account to Lake Company, $500.July 31Received cash for plumbing revenue for the last half of July, $8,505July 31Declared and paid cash dividends of $600Prepare journal entries to record the July transactions in the General Journal below.
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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 balance Cash (111) Revenu opening bal 90000 5500 7700 4800 8505 3300 total- $16205 1500 600 500 total- $16200 bal- $90,005 Prepaid Insurance (117) Rent Expe 4800 400 adjusting entry july 3 $5500 bal- $4400 Supplies (119) Salaries Exp 900 525 adjusting entry july 10 $3300 Bal- $375 remaining inventory Equipment (144) Insurance Ex 11500 $400 Accumulated Depreciation-Equipment (145) Supplies Exp 175 $525 Accounts Payable (212) Depreciation E July 19 $500 July 14 $10,000 $175 July 7 $900 bal- $10,400 Income Tax Payable (213) Income Tax E 3,200 3,200
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Common Stock (311) 90,000 Retained Ea 600 Dividends (313 July 31 $600
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es. ue (411) 8505 7700 Bal- $16205 ense (511) pense (512) xpense (513) pense (514) Expense (515) Expense (516)
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arnings (312) 3105 Bal- $2505
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Requirement #3:Prepare a trial balance for July in the space below. Melvin Plumbing Corporation Trial Balance July 31 Cash 90,005 Prepaid insurance 4,800 Supplies 900 Equipment 11,500 Accounts Payable 10,400 Common Stock 90,000 Service Revenue 16,205 Rent expense 5,500 Salaries expense 3,300 Dividends 600 116,605 116,605
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