ACCT 220 Maquoketa Services was formed on May 1, 2017
Question # 00332172
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Updated on: 07/05/2016 04:16 AM Due on: 07/05/2016
2-3A
Maquoketa Services was formed on May 1, 2017. The following transactions took place during the
first month.
Transactions on May 1:
1. Jay BradFord invested $40,000 cash in the company, as its sole owner.
Hired two employees to work in the warehouse. They will each be paid a salary of $3,200 per
2.
month.
Signed a 2-year rental agreement on a warehouse; paid $22,000 cash in advance for the first
3.
year.
Purchased furniture and equipment costing $31,900. A cash payment of $10,000 was made
4.
immediately; the remainder will be paid in 6 months.
5. Paid $2,000 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $600 cash.
7.
8.
9.
10.
11.
12.
Purchased more office supplies for $1,500 on account.
Total revenues earned were $21,900—$8,900 cash and $13,000 on account.
Paid $400 to suppliers for accounts payable due.
Received $2,800 from customers in payment of accounts receivable.
Received utility bills in the amount of $500, to be paid next month.
Paid the monthly salaries of the two employees, totaling $6,400.
Prepare journal entries to record each of the events listed. (Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No
Account Titles
.
1.
Cash
Debit
40,000
Owner's Capital
2.
No Entry
40,000
0
No Entry
3.
Prepaid Rent
0
22,000
Cash
4.
Equipm
ent
Credit
22,000
31,900
Cash
10,000
5.
6.
Supplies
600
Cash
7.
Supplies
Accounts Payable
8.
9.
10.
11.
12.
600
1,500
1,500
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Post the journal entries to T-accounts. (Post entries in the order of journal entries
presented in the previous question.)
Cash
(1)
40,000
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accounts Payable
Owner’s Capital
Service Revenue
Salaries and Wages Expense
Utilities Expense
LINK TO TEXT
Prepare a trial balance as of May 31, 2017.
MAQUOKETA SERVICES
Trial Balance
Debit
Credit
$
$
Totals
$
$
LINK TO TEXT
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Maquoketa Services was formed on May 1, 2017. The following transactions took place during the
first month.
Transactions on May 1:
1. Jay BradFord invested $40,000 cash in the company, as its sole owner.
Hired two employees to work in the warehouse. They will each be paid a salary of $3,200 per
2.
month.
Signed a 2-year rental agreement on a warehouse; paid $22,000 cash in advance for the first
3.
year.
Purchased furniture and equipment costing $31,900. A cash payment of $10,000 was made
4.
immediately; the remainder will be paid in 6 months.
5. Paid $2,000 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $600 cash.
7.
8.
9.
10.
11.
12.
Purchased more office supplies for $1,500 on account.
Total revenues earned were $21,900—$8,900 cash and $13,000 on account.
Paid $400 to suppliers for accounts payable due.
Received $2,800 from customers in payment of accounts receivable.
Received utility bills in the amount of $500, to be paid next month.
Paid the monthly salaries of the two employees, totaling $6,400.
Prepare journal entries to record each of the events listed. (Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No
Account Titles
.
1.
Cash
Debit
40,000
Owner's Capital
2.
No Entry
40,000
0
No Entry
3.
Prepaid Rent
0
22,000
Cash
4.
Equipm
ent
Credit
22,000
31,900
Cash
10,000
5.
6.
Supplies
600
Cash
7.
Supplies
Accounts Payable
8.
9.
10.
11.
12.
600
1,500
1,500
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Post the journal entries to T-accounts. (Post entries in the order of journal entries
presented in the previous question.)
Cash
(1)
40,000
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accounts Payable
Owner’s Capital
Service Revenue
Salaries and Wages Expense
Utilities Expense
LINK TO TEXT
Prepare a trial balance as of May 31, 2017.
MAQUOKETA SERVICES
Trial Balance
Debit
Credit
$
$
Totals
$
$
LINK TO TEXT
Question Attempts: 0 of 5
used
SAVE
FOR
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SUBMIT
ANSWER
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Solution: ACCT 220 Maquoketa Services was formed on May 1, 2017