During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing,completed 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 8/1Note: 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.
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 balanceCash (111)RevenuJuly 1, $90,000July 3, $5500July 15, $7700July 5, $4800July 31(a), $8505July 10, $3300July 14, $1500July 19, $500July 31(b), $600Bal $90,005Prepaid Insurance (117)Rent ExpeJuly 5, $4,800$400 July 3, $5,500Bal $4400Bal $5,500Supplies (119)Salaries ExpJuly 7, $900$525 July 10, $3,300Bal $375Bal $3,300Equipment (144)Insurance ExJuly 14, $11,500July 5, $400Bal $11,500Bal $400Accumulated Depreciation-Equipment (145)Supplies ExpJuly 31, $175July 31, $525Bal $175Bal $525Accounts Payable (212)Depreciation EJuly 19, $500July 7, $900July 31, $175July 14, $10,000Bal $10,400Bal $175Income Tax Payable (213)Income Tax EJuly 31, $3200July 31, $3200Bal $3200Bal $3200
Common Stock (311)July 1, $90,000Retained EaJuly 31, $13,100$600 Bal $90,000Dividends (313July 31, $600Bal $600