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In: Accounting

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’...

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

  1. On June 2, the company prepaid rent for July to September for $6,000.
  2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
  3. On June 10, the company collected $4,000 it was owed on account.
  4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
  5. On June 22 the company provided product and collected $5,000.
  6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
  7. On June 27 the company paid $2,000 cash on account.
  8. On June 29, the owner withdrew $600 for personal use.
  9. On June 30, the company purchased $1,000 of supplies on account.
  10. On June 30, the company paid employee salaries of $3,000.

Question: Open T-accounts using the beginning balances provided and post entries into T-accounts. Calculate the balance of each one.

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Expert Solution

ekkarill92 answered 2 years ago
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