(I need answer typed please) Transaction Analysis and Trial Balance Walsh & Comp
ID: 2340208 • Letter: #
Question
(I need answer typed please)
Transaction Analysis and Trial Balance
Walsh & Company, Electrical Contractors began operations on May 1. The following transactions occurred during the month of May:
Required
a. Create journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. The following accounts will be needed to record the transactions for May: Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Rent Expense; Wages Expense; Utilities Expense; Truck Expense; Advertising Expense; and Interest Expense.
b. Prepare a trial balance as of May 31.
May 1 Stockholders invested $50,800 in the business in exchange for common stock. 2 Purchased equipment on account, $5,000. 3 Returned $1,000 of equipment that was not satisfactory. The return reduced the amount owed to the supplier. 4 Purchased supplies on account, $1,660. 5 Purchased a truck for $11,300. Walsh paid $6,300 cash and gave a note payable for the balance. 6 Paid rent for May, $2,475. 7 Paid fuel cost for truck, $1,660. 8 Billed customers for services rendered, $15,300. 9 Paid $4,600 on account for the equipment purchased on May 2. 10 Paid utilities for May, $1,810. 11 Received invoice for May advertising, to be paid in June, $1,880. 12 Paid employees' wages, $4,950. 13 Collected $10,200 on accounts receivable. 14 Walsh paid stockholders a dividend of $2,300 cash. 15 Paid interest for May on an outstanding note payable, $160.Explanation / Answer
a.
Note: Kindly check transaction dated May 9 which should be $4000 and not $4600 as mentioned.
b.
General Journal Date Description Debit Credit 1 Cash 50800 Common stock 50800 2 Equipment 5000 Accounts payable 5000 3 Accounts payable 1000 Equipment 1000 4 Supplies 1660 Accounts payable 1660 5 Truck 11300 Cash 6300 Notes payable 5000 6 Rent expense 2475 Cash 2475 7 Truck expense 1660 Cash 1660 8 Accounts receivable 15300 Service revenue 15300 9 Accounts payable 4000 Cash 4000 10 Utilities expense 1810 Cash 1810 11 Advertising expense 1880 Accounts payable 1880 12 Wages expense 4950 Cash 4950 13 Cash 10200 Accounts receivable 10200 14 Dividends 2300 Cash 2300 15 Interest expense 160 Cash 160Related Questions
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