please answer all the required questions in order. thank you. During the month o
ID: 2517493 • Letter: P
Question
please answer all the required questions in order. thank you.
During the month of October of the current year, Dan's Accounting Service was opened The following transactions occurred. Oct 1 Oct 1 Dan sold $70,000 worth of stock (50 shares) to start the business Dan purchased $9,500 worth of office equipment on account from Noe's Furniture Supply Oct 1 Dan paid October's rent on the office. He wrote a check for $2,500 Oct 2 Dan purchased $400 worth of office supplies for cash Oct 4 The telephone was installed. We paid $95 (Utilities Expense) Oct 4 Dan placed an advertisement in the Anoka County Shopper. It cost S150 (cash) Oct 4 Dan started a petty cash fund with S50 for a fund balance Oct 5 We purchased (for cash) $45 worth of stamps (Miscellaneous Expense Oct 5 A three-month umbrella insurance policy was purchased for $720 (cash) Oct 7 Pola's Automotive Supply Company paid us $2,800 (cash) for setting up their Oct 9 We earned $3,200 from Esparsen's Fine Furniture Company for setting up their Oct 12 We paid a part-time employee $90 for running errands. There are no taxes to be Oct 14 Frisque's Food Service, Inc. paid us $1,700 for helping them with their taxes Oct 19 We paid our part-time employee $80 for running errands. There are no taxes to be Oct 23 We sent a check for $1,000 to Noe's Furniture Supply for the office equipment Oct 26 We earned $800 for consulting with Strodthoff s Clothing Outlet. They will pay Oct 26 We paid our part-time employee $50 for running errands. There are no taxes Oct 30 Esparsen's Fine Furniture Company paid us $900 on account for the work we did books books. They will pay us later withheld The actual bill was for $3,500. They will pay us the rest next month withheld. purchased on October Ist. us later withheld for them on October 9 Oct 30 Dan paid the stockholders $600 in dividends. Oct 31 Dan paid the electric bill which was $90 Oct 31 Dan replenished the petty cash fund. He had ised $12 for office supplies and $18 for miscellaneous expensesExplanation / Answer
GENERAL LEDGER
CASH
DATE
DETAILS
$
DATE
DETAILS
$
STOCKS ISSUED
70000
RENT
2500
PROF FEES
2800
OFFICE SUPPLIES
400
FRISQUE - PROF FEES
1700
UTILITIES
95
ESPANIA – PROF FEES
900
ADVERTISEMENTS
150
PETTY CASH
50
POSTAGE
45
INSURANCE
720
WAGES
90
“
80
SUPP NOES
1000
WAGES
50
DIVIDENDS
600
ELEC
90
PETTY CASH REIMBURSED
30
BAL C/D
69500
75400
75400
PROFE FEES
CASH POLA
2800
ACC REC ESPAREN
3200
ACC REC STRODHOFF
800
ACC REC FRISQ
3500
10300
ACC REC
ESPARIN
3200
PROF FEES FRISQ
3500
CASH RECEIPT FRISQ
1700
PRO FEES STRODHOFF
800
CASH RECEIPT ESPARIN
900
BAL C/D
4900
7500
7500
WAGES
CASH
90
p/l
260
CASH
80
CASH
50
ACC PAY
40
260
ADVT
CASH
150
PL
150
PETTY CASH
CASH
50
MISC
18
CASH
30
OFFICE EXO
12
B/D
50
80
80
POSTAGE
CASH
45
PL
45
INSURANECE
CASH
720
PL
240
B/D
480
720
WAGES PAY
WAGES
40
MISC / OFFICE EXP
PETTY CASH
18
PL
30
PETTY CASH
12
30
UTILITIES
CASH
95
PL
185
ELEC
90
185
NOE SUPPLIER
CASH
1000
PURCHASE OF EQUIPMENT
9500
B/D
8500
OFFICE EQUIP
NOE SUPPLIER
9500
SHARE CAPITAL
CASH
70000
RENT
CASH
2500
DIVIDENDS
CASH
600
DEP ON OFFICE EQIP
ACC DEP
250
ACC DEP OFFICE EQUIP
DEP
250
OFFICE SUPPLIES
CASH
400
PL
150
C/D
250
POST CLOSING TRIAL BALANCE
CODE
$
$
PROFESSIONAL FEES
611
10300
RENT
835
2500
WAGES
845
260
INSURANCE
820
240
DEP EQUIP
815
250
MISC/ OFFCE EXP
825
30
UTILITIES
840
185
OFFICE SUPPLIES
830
150
POSTAGE
45
ADVT
810
150
DIVIDENDS
513
600
OFFICE EQUIPMENT
201
9500
ACC DEP
250
250
ACC REC
108
4900
PREPAYMENTS
118
730
PETTY CASH/ CASH
101/ 102
69550
EQUITY
511
70000
ACC PAY
301
8500
WAGES PAY
308
40
89090
89090
INCOME STATEMENT
$
$
PROFESSIONAL FEES
10300
LESS EXPENSES
RENT
2500
WAGES
260
INSURANCE
240
DEP EQUIP
250
MISC/ OFFCE EXP
30
UTILITIES
185
POSTAGE
45
ADVT
150
-3810
NET PROFIT
6490
LESS DIVIDENDS
-600
RETAINED EARNINGS
5890
EPS
6490/50
129.80
BALANCE SHEET AS AT 31 OCT ……
NON CURRENT ASSETS
$
$
OFFICE EQUIPMENT
COST 9500
ACC DEP -250
9250
CURRENT ASSETS
ACC REC
4900
PREPAYMENT
730
PETTY CASH/ CASH
69550
75180
TOTAL ASSETS
84430
EQUITY
70000
RETAIND EARNINGS
5890
75890
CURRENT LIABILITIES
ACC PAY
8500
WAGES PAY
40
8540
TOTAL LIABILITIES
84430
CASH
DATE
DETAILS
$
DATE
DETAILS
$
STOCKS ISSUED
70000
RENT
2500
PROF FEES
2800
OFFICE SUPPLIES
400
FRISQUE - PROF FEES
1700
UTILITIES
95
ESPANIA – PROF FEES
900
ADVERTISEMENTS
150
PETTY CASH
50
POSTAGE
45
INSURANCE
720
WAGES
90
“
80
SUPP NOES
1000
WAGES
50
DIVIDENDS
600
ELEC
90
PETTY CASH REIMBURSED
30
BAL C/D
69500
75400
75400
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