Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / 3AMaquoketa Services was formed on May 1 2017 The following transactions took place during...

3AMaquoketa Services was formed on May 1 2017 The following transactions took place during thefirst monthTransactions on May 11 Jay BradFord invested $40000 cash in the company as its sole

3AMaquoketa Services was formed on May 1, 2017. The following transactions took place during thefirst month.Transactions on May 1:1. Jay BradFord invested $40,000 cash in the company, as its sole owner.Hired two employees to work in the warehouse. They will each be paid a salary of $3,200 per2.month.Signed a 2-year rental agreement on a warehouse; paid $22,000 cash in advance for the first3.year.Purchased furniture and equipment costing $31,900. A cash payment of $10,000 was made4.immediately; the remainder will be paid in 6 months.5. Paid $2,000 cash for a one-year insurance policy on the furniture and equipment.Transactions during the remainder of the month:6. Purchased basic office supplies for $600 cash.7.8.9.10.11.12.Purchased more office supplies for $1,500 on account.Total revenues earned were $21,900—$8,900 cash and $13,000 on account.Paid $400 to suppliers for accounts payable due.Received $2,800 from customers in payment of accounts receivable.Received utility bills in the amount of $500, to be paid next month.Paid the monthly salaries of the two employees, totaling $6,400.Prepare journal entries to record each of the events listed. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entryis required, select "No Entry" for the account titles and enter 0 for the amounts.)NoAccount Titles.1.CashDebit40,000Owner’s Capital2.No Entry40,0000No Entry3.Prepaid Rent022,000Cash4.EquipmentCredit22,00031,900Cash10,0005.6.Supplies600Cash7.SuppliesAccounts Payable8.9.10.11.12.6001,5001,500LINK TO TEXTLINK TO TEXTLINK TO TEXTPost the journal entries to T-accounts. (Post entries in the order of journal entriespresented in the previous question.)Cash(1)40,000Accounts ReceivableSuppliesPrepaid InsurancePrepaid RentEquipmentAccounts PayableOwner’s CapitalService RevenueSalaries and Wages ExpenseUtilities ExpenseLINK TO TEXTPrepare a trial balance as of May 31, 2017.MAQUOKETA SERVICESTrial BalanceDebitCredit

 

May 05 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions