Question

Following is the chart of accounts of Smith Financial Services:
Assets
111 Cash
113 Accounts Receivable
115 Supplies
117 Prepaid Insurance
124 Office Furniture
Liabilities
221 Accounts Payable
Owner’s Equity
311 A. Smith, Capital
312 A. Smith, Drawing
Revenue
411 Professional Fees
Expenses
511 Salary Expense
512 Rent Expense
513 Advertising Expense
514 Utilities Expense
Smith completed the following transactions during June (the first month of business):
June 1 Smith deposited $ 10,000 in a bank account in the name of the business.
3 Sold financial services on account to W. Johnson, $ 3,030, Inv. No. 001.
8 Paid a bill for advertising, $ 100, Ck. No. 200.
9 Bought supplies on account from Jones Supply, $ 75, Inv. No. 405.
13 Performed financial services for clients for cash, $ 3,200.
17 Received and paid the bill for utilities, $ 104, Ck. No. 201. 19 Bought a desk and chair from Davis Furniture, $ 600, paying $ 50 in cash and placing the balance on account, Ck. No. 202.
20 Bought liability insurance for one year, $ 600, Ck. No. 203.
23 Paid the rent for the current month, $ 400, Ck. No. 204.
27 Paid on account to Jones Supply, $ 75, for supplies purchased on June 9, Ck. No. 205.
29 Received $ 3,030 from W. Johnson for services performed on June 3.
29 Received and paid the telephone bill for the month, $ 80, Ck. No. 206.
30 Paid the salary of the office assistant, $ 600, Ck. No. 207.
30 Smith withdrew cash for her personal use, $ 800, Ck. No. 208.

Required
1. Journalize the transactions for June in the general journal, beginning on page 1.
2. Post the entries to the general ledger accounts.
3. Prepare a trial balance as of June 30, 20—.
4. Prepare an income statement for the month ended June 30, 20—.
5. Prepare a statement of owner’s equity for the month ended June 30, 20—.
6. Prepare a balance sheet as of June 30, 20—.



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  • CreatedOctober 21, 2014
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