Question

REQUIREMENT #3

Okay, I have a case study I need to complete by the end of this week but I am stuck. Plus, I need to make sure that I am doing this correctly. It is a layered challenge. I will have to send the study in pieces because I could not attach the actual document.   

Prepare a trial balance for July.    
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                                          
                                              
July 31   Declared and paid cash dividends of $600.                                          

Answer 1

In the books Of Quick Tax Corporation

Trial Balance for the Month of July

Description	Debit($)	Credit($)
Share Capital a/c		60000
Rent a/c	3500
Insurance Policy a/c	4200
Inventory(Purchased) a/c	1000
Creditor(Little Company) a/c		1000
Salary a/c	3500
Equipment a/c	10000
Tax Return a/c		17000
Dividend a/c	600
Lake Company (Payable) a/c		7000
Cash a/c	62000
Total	85000	85000

Working Note 1.

Cash Account

Dr.                                                                                                                                                                                          Cr.

Date	Description	Amount ($)	Date	Description	Amount ($)
1 July	To Share Capital	60000	3 July	By Rent	3500
15 July	To Tax Return	8000	5 July	By Insurance Policy	4200
31 July	To Tax Return	9000	10 July	By Salary	3500
			14 July	By Equipment	2500
			19 July	By Lake Company	500
			31 July	By Dividend	600
			31 July	By balance c/d	62200
		77000			77000

Working Note 2.

Journal Entries

Date	Description	Debit($)	Credit($)
1 July	Cash a/c     To Share Capital	60000	60000
3 July	Rent     To Cash a/c	3500	3500
5 July	Insurance Policy     To Cash a/c	4200	4200
7 July	Inventory(Purchased)     To Little Company(Creditor)	1000	1000
10 July	Salary     To Cash a/c	3500	3500
14 July	Equipment a/c     To Cash a/c     To Lake Company a/c	10000	2500 7500
15 July	Cash a/c     To Tax Return (received)	8000
19 July	Lake Company a/c     To Cash a/c	500	500
31 July	Cash a/c     To Tax Return(received)	9000	9000
31 July	Dividend a/c     To Cash a/c	600	600

Working Note 3.

Account Payable (Lake Company)

Dr.                                                                                                                                          Cr.

Date	Description	Amount ($)	Date	Description	Amount ($)
19 July	To Cash	500	14 July	By Equipment	7500
31 July	To balance c/d	7000
		7500			7500