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.
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.
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)
Insurance Expense (Debit) Supplies Expense (Debit) Depreciation Expense (Debit) Income Tax Expense (Debit)
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
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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