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, $4,800 400 a month
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/
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 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

Common Stock (311)
90,000 Retained Ea
600
Dividends (313
July 31 $600

es.
ue (411)
8505
7700
Bal- $16205
ense (511)
pense (512)
xpense (513)
pense (514)
Expense (515)
Expense (516)

arnings (312)
3105
Bal- $2505

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