Question

Amplitude Productions Company produces documentaries. The unadjusted trial balance on April 30, 2015, is shown below:
The following business transactions were completed by Amplitude Productions Company during May:
May 1. Purchased office supplies on account, $1,000
5. Returned a portion of the office supplies purchased on May 1, receiving full credit for their cost, $400.
8. Arranged and paid for insurance for the next documentary, $1,200 for the duration of the production.
10. Received cash from ticket sales on account, $15,000.
15. Discovered an error in computing salary; received cash from the producer for the overpayment, $2,000.
25. An interested party deposited $3,000 in the company’s account, as a deposit to encourage the company to start work on a documentary in the following year.
26. Paid automobile expense, $750.
27. Paid miscellaneous expenses, $600.
30. Paid salaries for the month, $8,000.
30. Recorded revenue earned and billed to client for last documentary during the month, $5,000.
Instructions
1. Record the May 1, 2015, balance of each account in a three-column ledger, noting if it is a debit or credit. Write Balance in the item section, and place a check mark (✔) in the Posting Reference column.
2. Journalize the transactions for May in a two-column journal. Explanations may be omitted.
3. Post the journal entries to the ledger, extending the account balance and noting debit or credit after each posting of the balance.
4. Prepare an unadjusted trial balance as at May 31, 2015.


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  • CreatedSeptember 15, 2015
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