Question

REQUIREMENT #10

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.   

Requirement #10:                      
                      
Prepare a post-closing trial balance as of July 31 in the space below.          
Quick Tax Corporation          
Post-Closing Trial Balance          
July 31          

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

Quick Tax Corporation
Trial balance as on July 31
Account Name	Debit	Credit
Share Capital		60,000
Accounts Payable		8,000
Bank	62,200
Equipment	10,000
Income from Tax Return Preparation		17,000
Rent	3,500
Insurance Premium	4,200
Purchase	1,000
Salary	3,500
Dividend	600
Total	85,000	85,000

WORKING NOTES

1)

Bank A/C

Particulars	Amount	Particulars	Amount
Share Capital	60,000	Rent	3,500
Income from Tax Return Preparation(July 15)	8,000	Insurance Premium	4,200
Income from Tax Return Preparation(July 31)	9,000	Equipment	2,500
		Salary	3,500
		Dividend	600
		Account Payable (Lake Company)	500
		Balance c/d	62,200
	77,000		77,000

2)

Account Payable

Particulars	Amount
Little Company	1,000
Lake Company (7500-500)	7,000
Total	8,000

3)

Income from Tax Return Preparation

Date	Particulars	Amount
July 15	Bank	8,000
July 31	Bank	9,000
	Total	17,000