Question

In June 2016, Carolyn Davis opened a photography studio that provides services to public and private schools. Her firm’s financial activities for the first month of operations and the chart of accounts appear below.

INSTRUCTIONS
1. Journalize the transactions. Number the journal page 1 and write the year at the top of the Date column. Describe each entry.
2. Post to the ledger accounts. Before you start the posting process, open the accounts by entering the names and numbers in the headings. Follow the order of the accounts in the chart of accounts.
ASSETS
101 Cash
111 Accounts Receivable
121 Supplies
141 Office Equipment
151 Photographic Equipment
LIABILITIES
202 Accounts Payable
OWNER’S EQUITY
301 Carolyn Davis, Capital
302 Carolyn Davis, Drawing
REVENUE
401 Fees Income
EXPENSES
511 Office Cleaning Expense
514 Rent Expense
517 Salaries Expense
520 Telephone Expense
523 Utilities Expense
DATE TRANSACTIONS
June 1 Carolyn Davis invested $18,000 cash in the business.
2 Issued Check 1001 for $1,250 to pay the June rent.
5 Purchased desks and other office furniture for $7,500 from Desoto, Inc., received Invoice 5312, payable in 60 days.
6 Issued Check 1002 for $1,900 to purchase photographic equipment.
7 Purchased supplies for $538; paid with Check 1003.
10 Issued Check 1004 for $400 for office cleaning service.
12 Performed services for $1,300 in cash and $1,300 on credit. (Use one compound entry.)
15 Returned damaged supplies; received a $150 cash refund.
18 Purchased a computer for $1,850 from Denison Office Supply, Invoice 304; issued Check 1005 for a $500 down payment. The balance is payable in 30 days. (Use one compound entry.)
20 Issued Check 1006 for $2,500 to Desoto, Inc., as payment on account for office furniture, Invoice 5312.
26 Performed services for $2,000 on credit.
27 Paid $580 for monthly telephone bill; issued Check 1007.
30 Received $2,100 in cash from credit clients on account.
30 Issued Check 1008 to pay the monthly utility bill of $575.
30 Issued Checks 1009–1011 for $5,600 for salaries.
Analyze: What was the Cash account balance after the transaction of June 27 was recorded?



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  • CreatedAugust 08, 2014
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