Question: Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance The following transactions occurred during the month for Teresa Parker, CPA:
Jun. 1 Parker opened an accounting firm by contributing $13,200 cash and office furniture with a fair market value of $5,300 in exchange for common stock.
5 Paid monthly rent of $1,300.
9 Purchased office supplies on account, $600.
14 Paid employee’s salary, $1,900.
18 Received a bill for utilities to be paid next month, $370.
21 Paid $500 of the accounts payable created on June 9.
25 Performed accounting services on account, $5,700.
28 Paid cash dividends of $6,700
Requirements 3. Prepare the trial balance as of June 30, 2018
The required trial balance is prepared in step 2.
The Trial Balance is defined as the accounting worksheet which helps in checking the accuracy of the financial preparation.
Teresa Parker, CPA
June 30, 2018
Question: The following transactions occurred for Lawrence Engineering:
Jul. 2 Received $14,000 contribution from Brett Lawrence in exchange for common stock.
4 Paid utilities expense of $370.
5 Purchased equipment on account, $1,600.
10 Performed services for a client on account, $2,900.
12 Borrowed $7,100 cash, signing a notes payable.
19 Cash dividends of $200 were paid to stockholders.
21 Purchased office supplies for $840 and paid cash.
27 Paid the liability from July 5.
Requirements 1. Open the following T-accounts for Lawrence Engineering: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; and Utilities Expense.
Question: The following transactions occurred for Wilke Technology Solutions:
May 1 The business received cash of $105,000 and issued common stock to Zoe Wilke.
2 Purchased office supplies on account, $550.
4 Paid $57,000 cash for building and land. The building had a fair market value of $45,000.
6 Performed services for customers and received cash, $3,600.
9 Paid $350 on accounts payable.
17 Performed services for customers on account, $3,500.
19 Paid rent expense for the month, $1,200.
20 Received $1,500 from customers for services to be performed next month.
21 Paid $900 for advertising in next month’s IT Technology magazine.
23 Received $3,100 cash on account from a customer.
31 Incurred and paid salaries, $1,700
Posting journal entries to four-column accounts
Requirements 2. Post the journal entries to the four-column accounts, and determine the balance in the account after each transaction. Assume that the journal entries were recorded on page 10 of the journal. Make sure to complete the Post. Ref. columns in the journal and ledger.
Better Days Ahead, a charitable organization, has a standing agreement with First National Bank. The agreement allows Better Days Ahead to overdraw its cash balance at the bank when donations are running low. In the past, Better Days Ahead managed funds wisely and rarely used this privilege. Jacob Henson has recently become the president of Better Days Ahead. To expand operations, Henson acquired office equipment and spent large amounts on fundraising. During Henson’s presidency, Better Days Ahead has maintained a negative bank balance of approximately $10,000.
What is the ethical issue in this situation, if any?
State why you approve or disapprove of Henson’s management of Better Days Ahead’s funds.
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