on April 1st John Milton open Milton Company the company provides services to a
ID: 2524199 • Letter: O
Question
on April 1st John Milton open Milton Company the company provides services to a variety of clients the company was organized as a corporation and has a monthly accounting. The following transactions occurred during April April 1st Milton invested $50,000 cash in the company in exchange for its common stock April 1st the company paid $1,500 cash to rent office space for April April 1st the company paid $720 cash for the premium on a six-month insurance policy coverage begins on April 1st April 4th the company perform services for a client and receive $3,800 cash April 7th the company purchased $1,780 of supplies on account April 14th the company paid $980 cash for salary earned by an employee April 24th the company performs services for a client and receive $5,400 cash April 28th the company paid $980 cash for salary earned by an employee April 30th the company paid $480 cash for this month's utility bill April 30th the company paid $900 cash in dividends.
complete the entire accounting cycle for Milton company the nine steps are listed steps 1 through 3 take place daily these three steps should be repeated in order each time a transaction takes place during the period steps 4 through 9 take place at the end of the period these steps should be completed in order after the period is over
The company's chart of accounts follows: REVENUES ASSETS Service Revenue Cash Supplies Prepaid Insurance EXPENSES Salary Expense Rent Expense Supplies Expense Utilities Expense insurance Expense LIABILITIES Accounts Payable Salary Payable EQUITY Common Stock Retained Earnings CLEARING Income Summary DIVIDENDS Dividends Adjustment Data 1. As of April 30, $120 of insurance coverage has expired. 2. As of April 30, the company has $849 of supplies remaining. 3. As of April 30, the company has incurred $140 of unpaid and unrecorded salaryExplanation / Answer
01-Apr Cash 50000 Common Stock 50000 01-Apr Rent Expense 1500 Cash 1500 01-Apr Prepaid insurance 720 Cash 720 04-Apr Cash 3800 Service Revenue 3800 07-Apr Supplies 1780 Trade Payable 1780 14-Apr Salary Expense 980 Cash 980 24-Apr Cash 5400 Service Revenue 5400 28-Apr Salary Expense 980 Cash 980 30-Apr Utility Expense 480 Cash 480 30-Apr Dividend 900 Cash 900 Cash 01-Apr 50000 01-Apr 1500 04-Apr 3800 01-Apr 720 24-Apr 5400 14-Apr 980 28-Apr 980 30-Apr 480 30-Apr 900 53640 Common Stock 01-Apr 50000 50000 Prepaid Insurance 01-Apr 720 720 Rent Expense 01-Apr 1500 1500 Service Revenue 04-Apr 3800 24-Apr 5400 9200 Supplies 07-Apr 1780 1780 Trade Payable 07-Apr 1780 1780 Salary Expense 14-Apr 980 28-Apr 980 1960 Dividend 30-Apr 900 Utility Expense 30-Apr 480 Adjustment Entries 30-Apr Insurance Expense 120 Prepaid Insurance 120 30-Apr Supplies Expense 931 (1780-849) Supplies 931 30-Apr Salary Expense 140 Salary Payable 140 Unadjusted Trial Adjusted Trial Particular Debit Credit Adjustemnt Debit Credit Cash 53640 53640 Common Stock 50000 50000 Rent Expense 1500 1500 Prepaid insurance 720 -120 600 Service Revenue 9200 9200 Supplies 1780 -931 849 Trade Payable 1780 1780 Salary Expense 1960 140 2100 Utility Expense 480 480 Dividend 900 900 Insurance Expense 120 120 Supplies Expense 931 931 Salary Payable 140 140 60980 60980 61120 61120 Income Statement Service Revenue 9200 Less: Rent Expense 1500 Salary Expense 2100 Utility Expense 480 Insurance Expense 120 Supplies Expense 931 Total Expense 5131 Profit 4069 Balanc e Sheet Assets Amount Liabilities Amount Prepaid insurance 600 Trade Payable 1780 Supplies 849 Salary Payable 140 Cash 53640 Common Stock 50000 Retained Earning 3169 (4069-900) 55089 55089 Closing Entry Debit Credit Service Revenue 9200 Rent Expense 1500 Salary Expense 2100 Utility Expense 480 Insurance Expense 120 Supplies Expense 931 Dividend 900 Retained Earning 3169 b/f
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