Requirement 1 During its first month of operation the Melvin Plumbing

Requirement 1 during its first month of operation the

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Requirement #1: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, $4,800July 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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19-Jul On Accout Expense 500 Cash 500 Paid on Account 31-Jul Cash 8,505 Plumbing 8,505 Received Cash for plumbing 31-Jul Dividend 600 Cash 600 Paid Dividend 133,305 133,305 Note: Remember that debits must equal credits—All of your journal entries should balance.
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g, /1. Use the following account names for journal entries. Chart of Accounts: Account Title (Normal Balance) Assets Cash (Debit) Prepaid Insurance (Debit) Supplies (Debit) Equipment (Debit) Accumulated Depreciation - Equipment (Credit) Liabilities Accounts Payable (Credit) Income Tax Payable (Credit) Stockholders' Equity Common Stock (Credit) Retained Earnings (Credit) Dividends (Debit) Revenue Revenue (Credit) Expenses Rent Expense (Debit) Salaries Expense (Debit)
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Insurance Expense (Debit) Supplies Expense (Debit) Depreciation Expense (Debit) Income Tax Expense (Debit)
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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 July 1 90,000 Jul 3 5,500 July 15 7,700 Jul 5 4,800 Jul 31 8,505 Jul 10 3300 Jul-14 15,000 Jul-19 500 Jul-31 600 Bal 90,005 Prepaid Insurance (117) Rent Expe 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 Exp Jul-7 900 Jul-31 375 July-10 3,300 (Adj) Bal 900 Adj Bal 525 Bal 3,300 Equipment (144) Insurance Ex Jul 14 11,500 Jul-31 400 (Adj) Bal 11,500 Adjn Bal 400 Accumulated Depreciation-Equipment (145) Supplies Exp 0 0 Jul-31 375 (Adj) Bal 375 Accounts Payable (212) Depreciation E Jul 19 500 Jul 7 900 Jul-31 150 Jul 14 10000 (Adj) Bal 10400 Adj Bal 150
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Income tax Payable Income Tax E 0 0 Common Stock (311) Jul-1 90,000 Retained Ea Bal 90,000 Dividends (313 July 31 600 Bal 600
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es.
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