(i need the answes typed ) Transaction Analysis and Trial Balance William Groff
ID: 2341386 • Letter: #
Question
(i need the answes typed )
Transaction Analysis and Trial Balance
William Groff opened a tax practice (William Groff, Tax Accounting, Inc.), on June 1. The following accounts will be needed to record business's transactions for June: Cash; Accounts Receivable; Office Supplies; Tax Library; Office Furniture and Fixtures; Accounts Payable; Notes Payable; Common Stock; Dividends; Professional Fees Earned; Rent Expense; Salaries Expense; Advertising Expense; Utilities Expense; and Interest Expense. The following transactions occurred in June:
Required
a. Prepare journal entries and record the above transactions in T-accounts, and key entries with the number of the transactions.
b. Prepare a trial balance from the general ledger as of June 30.
June 1 Groff opened a business checking account at a local bank, investing $20,800 in his practice in exchange for common stock. 2 Purchased office furniture and fixtures for $10,600, paid $3,600 cash, and gave a note payable for the balance. 3 Purchased books and software for a tax library on account, $6,500. 4 Purchased office supplies for cash, $1,360. 5 Paid rent for June, $1,750. 6 Returned $1,100 of books with defective bindings. The return reduced the amount owed to the supplier. 7 Billed clients for professional services rendered, $18,400. 8 Paid $2,500 on account for the library items purchased on June 3. 9 Collected $16,700 on account from clients billed on June 7. 10 Paid June salaries, $5,700. 11 Received invoice for June advertising, to be paid in July, $1,100. 12 Paid stockholders a cash dividend of $1,600. 13 Paid utilities for June, $960. 14 Paid interest for June on an outstanding note payable, $140.Explanation / Answer
a. Prepare journal entries and record the above transactions in T-accounts, and key entries with the number of the transactions. Description Debit Credit Cash 20800 Common Stock 20800 To record issuance of common stock Office Furniture & Fixtures 10600 cash 3600 Note Payable 7000 To record purchase of office furniture and fixtures. Tax Liabrary 6500 Accounts Payable 6500 To record purchases for tax library. Office Supplies 1360 Cash 1360 To record purchase of office supplies. Rent Expense 1750 Cash 1750 To record payment for rent. Accounts Payable 1100 Tax Liabrary 1100 To record return of defective books. Accounts Receivable 18400 Professional Fees Earned 18400 To record billings of professional services earned. Accounts Payable 2500 Cash 2500 To record payment of library items purchased. Cash 16700 Accounts Receivable 16700 To record cash collected form customers. Salaries Expense 5700 Cash 5700 To record payment of salaries. Advertising expense 1100 Accounts Payable 1100 To record invoice for advertising. Dividends 1600 Cash 1600 To record payment of dividends. Utilities Expense 960 Cash 960 To record payment of utilities expense. Interest expense 140 Cash 140 Cash -1 20800 20800 -2 3600 17200 -4 1360 15840 -5 1750 14090 -8 2500 11590 -9 16700 28290 -10 5700 22590 -12 1600 20990 -13 960 20030 -14 140 19890 Bal 19890 Accounts Receivable -7 18400 18400 -9 16700 1700 Bal 1700 Office Furniture and Fixtures -2 10600 10600 Bal 10600 Notes Payable -2 7000 7000 Bal 7000 Accounts Payable -3 6500 6500 -6 1100 5400 -8 2500 2900 -11 1100 4000 Bal 4000 Common Stock -1 20800 20800 Bal 20800 Interest Expense -14 140 140 Bal 140 Salaries Expense -10 5700 5700 Bal 5700 Rent Expense -5 1750 1750 Bal 1750 Professional Fees Earned -7 18400 18400 Bal 18400 Advertising Expense -11 1100 1100 Bal 1100 Utilities Expense -13 960 960 Bal 960 Tax Library -3 6500 6500 -6 1100 5400 Bal 5400 Office supplies -4 1360 1360 Bal 1360 Dividends -12 1600 1600 Bal 1600 b. Prepare a trial balance from the general ledger as of June 30. WILLIAM GROFF , TAX ACCOUNTING, INC. Trial Balance Jun-30 Debit Credit Cash 19890 Accounts Receivable 1700 Office Supplies 1360 Tax Library 5400 Office Furniture and Fixtures 10600 Accounts Payable 4000 Notes Payable 7000 Common Stock 20800 Dividends 1600 Professional Fees Earned 18400 Rent Expense 1750 Salaries Expense 5700 Advertising Expense 1100 Utilities Expense 960 Interest Expense 140 Totals 50200 50200
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