Question

During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,                                          
completed the following transactions.                                          
                                          
July 1   Began business by making a deposit in a company bank account of $60,000, in exchange                                      
   for 6,000 shares of $10 par value common stock.                                      
                                          
July 3   Paid the current month's rent, $3,500                                      
                                          
July 5   Paid the premium on a 1-year insurance policy, $4,200                                      
                                          
July 7   Purchased supplies on account from Little Company, $1,000.                                      
                                          
July 10   Paid employee salaries, $3,500                                      
                                          
July 14   Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was                                      
   placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1.                                      
   Note: Use accounts payable for the balance due.                                      
                                          
July 15   Received cash for preparing tax returns for the first half of July, $8,000                                      
                                          
July 19   Made payment on account to Lake Company, $500.                                      
                                          
July 31   Received cash for preparing tax returns for the last half of July, $9,000                                      
                                          
Create The Following:

General Ledger

Trial Balance

Adjusting Entries

Adjusted Trial Balance

Financial Statements

Closing Entries Sheet

Post Closing Trial Balance Sheet

Answer 1

Date	Journal Entries	Dr. ($)	Cr. ($)
Jul-01	cash	60000
	To common stock		60000
Jul-03	rent expenses	3500
	To cash		3500
Jul-05	prepaid insurance	4200
	To cash		4200
Jul-07	supplies	1000
	To accounts payable		1000
Jul-10	salaries expenses	3500
	To cash		3500
Jul-14	equipment	10000
	To cash		2500
	To accounts payable		7500
Jul-15	cash	8000
	To services		8000
Jul-19	accounts payable	500
	To cash		500
Jul-31	cash	9000
	To services		9000
	adjusting entries
Jul-31	insurance expenses	350
	To prepaid insurance		350

	unadjusted trial balance	adjustments	adjusted trial balance
accounts	Dr. ($)	Cr. ($)	Dr. ($)	Cr. ($)	Dr. ($)	Cr. ($)
cash	62800				62800
supplies	1000				1000
prepaid insurance	4200			350	3850
equipment	10000				10000
common stock		60000				60000
accounts payable		8000				8000
services		17000				17000
salaries expenses	3500				3500
rent expenses	3500				3500
insurance expenses			350		350
totals	85000	85000	350	350	85000	85000

Income Statement
For the period July 31 (amounts in $)
services	17000
total revenue		17000
expenses
salaries expenses	3500
rent expenses	3500
insurance expenses	350
total expenses		7350
net income		9650
Balance sheet
As of July 31 (amounts in $)
assets
current assets
cash	62800
supplies	1000
prepaid insurance	3850
total current assets		67650
non-current assets
equipment	10000
total non-current assets		10000
total assets		77650
liabilities
current liabilities
accounts payable	8000
total liabilities		8000
stockholders equity
common stock	60000
net income	9650
total stockholders equity		69650
total liabilities		77650

Date	Closing Entries	Dr. ($)	Cr. ($)
Jul-31	services	17000
	To income summary		17000
	(closing of revenue accounts)
Jul-31	income summary	7350
	To salaries expenses		3500
	To rent expenses		3500
	To insurance expenses		350
	(closing of expenses accounts)
Jul-31	income summary	9650
	To retained earnings		9650
	(closing income summary to retained earnings)

Post Closing Trial Balance
Jul-31
accounts	Dr. ($)	Cr. ($)
cash	62800
supplies	1000
prepaid insurance	3850
equipment	10000
accounts payable		8000
common stock		60000
retained earnings		9650
totals	77650	77650