Question

June

Date
June-01	Collected $ 1500 cash from customer accounts receivable
June-02	Purchased supplies on account that cost $ 300
June-07	Recorded services of catering to customers and cash receipts were $ 500 and invoices for services on account were $ 1500.
June-08	Received $ 450 cash as an advance payment on May 10 from a client to be served in June and completed the job on June 8.
June-10	Paid the utility company for the monthly utility bills that had been received in the previous month, $ 360
June-15	Paid $ 1800 cash for employee salaries
June-15	Purchased a one-year insurance policy for $ 1000 on the microwave
June-16	Paid $ 150 on the account payable that was established when supplies were purchased on June 2.
June-20	Paid a $ 300 cash dividend to the stockholders
June-27	Received monthly utility bills amounting to $ 350. The bills would be paid in the month of July
June-31	Recorded revenues to customers. Cash receipts were $ 800, and invoices for sales on account were $ 1350
June-31	Paid $ 1800 cash for employee salaries

Required:

1. Describe and journalise the transactions for the month of June in the general journal.

2. Record and post appropriate adjusting entries for June.

3. Prepare an adjusted trial balance for the month of June.

4. Prepare an income statement and statement of retained earnings for the month of June.

5. Record and post the closing entries for the month of June.

6. Prepare a closing trial balance for June.

Answer 1

Journal entries for month of June

Date	Account title and explanation	Debit	Credit
June 01	Cash	$1,500
	Accounts receivable		$1,500
	[Collections from customers]
June 02	Supplies	$300
	Accounts payable		$300
	[Purchased supplies on account]
June 07	Cash	$500
	Accounts receivable	$1,500
	Service revenue		$2,000
	[To record service revenue]
June 08	Unearned service revenue	$450
	Service revenue		$450
	[Services performed for unearned revenue]
June 10	Utility payable	$360
	Cash		$360
	[Cash paid for utilities]
June 15	Salaries expense	$1,800
	Cash		$1,800
	[Paid for salaries]
June 15	Prepaid insurance	$1,000
	Cash		$1,000
	[Paid for insurance]
June 16	Accounts payable	$150
	Cash		$150
	[Paid to accounts payable]
June 20	Retained earnings	$300
	Cash		$300
	[Paid cash dividends]
June 27	Utilities expense	$350
	Utilities payable		$350
	[Accrued utility expense]
June 31	Cash	$800
	Accounts receivable	$1,350
	Sales revenue		$2,150
	[To record sales revenue]
June 31	Salaries expense	$1,800
	Cash		$1,800
	[Paid for salaries expense]