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Financial & Managerial Accounting
Found in: Page 92
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Roshaun Gould a web consulting firm called Gould Solutions. He began operations started and completed seven transactions in April that resulted in the following accounts, which all have normal balances.

Cash ………………………………………. $20,000

Office supplies ……………………………….. 750

Prepaid rent ………………………………… 1,800

Office equipment …………………………. 12,250

Accounts payable ………………………… 12,250

Common stock ……………………………. 15,000

Dividends ……………………………………. 5,200

Consulting fees earned ………………….. 20,400

Miscellaneous expenses ………………….. 7,650

Required

1. Prepare a trial balance for this business as of the end of April.

The total of trial balance matches at $47,650.

See the step by step solution

Step by Step Solution

Account number and balance type

In the given case, there are 9 accounts listed, out of those 6 accounts have debit balances and the rest 3 of them have a credit balance. These accounts have been listed in the trial balance in step 2.

Trial Balance                                                                                                       

Karla Tanner

Trial Balance

April 30

Debit

Credit

Cash

$ 20,000

Office Supplies

750

Prepaid Rent

1,800

Office Equipment

12,250

Accounts Payable

$ 12,250

Common Stock

15,000

Dividends

5,200

Consulting Fees Earned

20,400

Miscellaneous Expenses

7,650

Total

$ 47,650

$ 47,650

Most popular questions for Business-studies Textbooks

Question: Aracel Engineering completed the following transactions in the month of June.

a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company in exchange for common stock.

b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a longterm note payable for $42,700.

c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b.

d. The company paid $3,000 cash for the premium on an 18-month insurance policy.

e. The company completed and delivered a set of plans for a client and collected $6,200 cash.

f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.

g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.

h. The company purchased $1,150 of additional office equipment on credit.

i. The company completed engineering services for $22,000 on credit.

j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days.

k. The company collected $7,000 cash in partial payment from the client described in transaction g.

l. The company paid $1,200 cash for wages to a drafting assistant.

m. The company paid $1,150 cash to settle the account payable created in transaction h.

n. The company paid $925 cash for minor maintenance of its drafting equipment.

o. The company paid $9,480 cash in dividends.

p. The company paid $1,200 cash for wages to a drafting assistant.

q. The company paid $2,500 cash for advertisements on the web during June.

Required

1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).

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