ACC 205 Week 1 Exercise 9 Entry and trial balance preparation

ACC 205 Week 1 Exercise 9 Entry and trial balance preparation

Entry and trial balance preparation. Lee Adkins is a portrait artist. The following schedule represents Lee’s combined chart of accounts and trial balance as of May 31.

Account number Account name Debit Credit

110	Cash	$ 2,700
120	Accounts Receivable	12,100
130	Equipment and Supplies	2,800
140	Studio	45,000
210	Accounts Payable		$2,600
310	Lee Adkins, Owners Equity		57,400
320	Lee Adkins, Drawing	30,000
410	Revenue		39,000
510	Advertising Expense	2,300
520	Salaries Expense	2,100
540	Utilities Expense	2,000
	$99,000	$99,000

The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June:

6/2:	Collected $7,500 on account from customers.
6/7:	Sold 25% of the equipment and supplies to a young artist for $700 for cash
6/10:	Received a $500 bill from the accountant for preparing last quarter’s financial statements.
6/15:	Paid $2,100 to creditors on account.
6/27:	Adkins withdrew $1,000 cash for personal use.
6/30:	Billed a customer $3,000 for a portrait painted this month.

2. Record the necessary journal entries for June on page 2 of the company’s general journal. (See Exhibit 2.6)
3. Open running balance ledger “T” accounts by entering account titles, account num­bers, and May 31 balances. (See exhibit 2.3 and 2.4)
4. Post the journal entries to the “T” accounts.
5. Prepare a trial balance as of June 30. (See exhibit 2.9)

 

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