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Selected transactions from the journal of Roberta Mendez, investment broker, are

ID: 2371265 • Letter: S

Question

Selected transactions from the journal of Roberta Mendez, investment broker, are presented below.

Date Account Titles and Explanation Ref. Debit Credit Aug.1 Cash 5,000 Common Stock 5,000 (Investment of cash for stock) 10 Cash 2,700 Service Revenue 2,700 (Received cash for services provided) 12 Equipment 5,000 Cash 1,000 Notes Payable 4,000 (Purchased office equipment for cash and notes payable) 25 Accounts Receivable 1,600 Service Revenue 1,600 (Billed clients for services provided) 31 Cash 850 Accounts Receivable 850 (Receipt of cash on account)

Selected transactions from the journal of Roberta Mendez, investment broker, are presented below.

Date Account Titles and Explanation Ref. Debit Credit Aug.1 Cash 5,000 Common Stock 5,000 (Investment of cash for stock) 10 Cash 2,700 Service Revenue 2,700 (Received cash for services provided) 12 Equipment 5,000 Cash 1,000 Notes Payable 4,000 (Purchased office equipment for cash and notes payable) 25 Accounts Receivable 1,600 Service Revenue 1,600 (Billed clients for services provided) 31 Cash 850 Accounts Receivable 850 (Receipt of cash on account) Date Account Titles and Explanation Ref. Debit Credit Aug.1 5,000 Common Stock 5,000 (Investment of cash for stock) 10 Cash 2,700 Service Revenue 2,700 (Received cash for services provided) 12 Equipment 5,000 Cash 1,000 Notes Payable 4,000 (Purchased office equipment for cash and notes payable) 25 Accounts Receivable 1,600 Service Revenue 1,600 (Billed clients for services provided) 31 Cash 850 Accounts Receivable 850 (Receipt of cash on account) Post the transactions to T accounts. Selected transactions from the journal of Roberta Mendez, investment broker, are presented below.

Date Account Titles and Explanation Ref. Debit Credit Aug.1 Cash 5,000 Common Stock 5,000 (Investment of cash for stock) 10 Cash 2,700 Service Revenue 2,700 (Received cash for services provided) 12 Equipment 5,000 Cash 1,000 Notes Payable 4,000 (Purchased office equipment for cash and notes payable) 25 Accounts Receivable 1,600 Service Revenue 1,600 (Billed clients for services provided) 31 Cash 850 Accounts Receivable 850 (Receipt of cash on account)

Explanation / Answer

1- Post to ledger account.

Cash

Debit

Credit

3000

1000

2400

900

final

5300

Total

6300

6300

Capital

Debit

Credit

Total

3000

service revenue

Debit

Credit

2400

1600

Total

4000

Office Equipment

Debit

Credit

Total

5000

Notes payable

Debit

Credit

Total

4000

Accounts receivable

Debit

Credit

1600

900

final

    700

Total

1600

1600

2- Prepare a trial balance on August 31,2005.

Account

Debit

Credit

Cash

5300

Capital

3000

service revenue

4000

Office Equipment

5000

Notes payable

4000

Accounts receivable

700

Total

11.000

11.000

Debit

Credit

3000

1000

2400

900

final

5300

Total

6300

6300

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