During its first month of operation the Melvin Plumbing Corporation which

During its first month of operation the melvin

This preview shows page 3 - 10 out of 18 pages.

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.
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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 July 3, $5500 July 15, $7700 July 5, $4800 July 31(a), $8505 July 10, $3300 July 14, $1500 July 19, $500 July 31(b), $600 Bal $90,005 Prepaid Insurance (117) Rent Expe July 5, $4,800 $400 July 3, $5,500 Bal $4400 Bal $5,500 Supplies (119) Salaries Exp July 7, $900 $525 July 10, $3,300 Bal $375 Bal $3,300 Equipment (144) Insurance Ex July 14, $11,500 July 5, $400 Bal $11,500 Bal $400 Accumulated Depreciation-Equipment (145) Supplies Exp July 31, $175 July 31, $525 Bal $175 Bal $525 Accounts Payable (212) Depreciation E July 19, $500 July 7, $900 July 31, $175 July 14, $10,000 Bal $10,400 Bal $175 Income Tax Payable (213) Income Tax E July 31, $3200 July 31, $3200 Bal $3200 Bal $3200
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Common Stock (311) July 1, $90,000 Retained Ea July 31, $13,100 $600 Bal $90,000 Dividends (313 July 31, $600 Bal $600
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es. ue (411) July 15, $7,700 July 31(a), $8,505 Bal $16,205 ense (511) pense (512) xpense (513) pense (514) Expense (515) Expense (516)
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arnings (312) July 31, $16,205
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Requirement #3:Prepare a trial balance for July in the space below.
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