This problem continues with the business of Pure Water Inc
This problem continues with the business of Pure Water, Inc., begun in the continuing problem in Chapter 1. Here you will account for Pure Water, Inc.’s transactions using formal accounting practices. The trial balance for Pure Water, Inc., as of May 31, 2012, is presented below.

During June the following transactions occurred:
Jun 1 Paid receptionist’s salary, $550.
2 Paid cash to acquire land for a future office site, $17,000.
3 Moved into a new location for the business and paid the first month’s rent, $1,800.
4 Performed service for a customer and received cash, $1,900.
5 Received $400 on account.
8 Purchased $600 of supplies on account.
11 Billed customers for services performed, $2,800.
13 Sold an additional $10,000 of common stock to Mel Hollingsworth.
16 Paid receptionist’s salary, $550.
17 Received $1,400 cash for services performed.
18 Received $900 from customers on account.
19 Paid $325 to be listed in the Yellow Pages telephone directory.
21 Paid $800 on account.
22 Purchased office furniture on account, $3,600.
24 Paid miscellaneous expenses, $250.
26 Billed customers for services provided, $1,300.
28 Received $1,600 from customers on account.
30 Paid utility bill, $690.
30 Paid receptionist’s salary, $550.
30 Paid $3,100 of dividends.

1. Journalize the transactions that occurred in June, omit explanations.
2. Open the ledger accounts listed in the trial balance together with their beginning balances at May 31. Use the four-column account format illustrated in the chapter. Enter “Bal” for the May 31 balance in the Item column. Post the journal entries to the ledger creating new ledger accounts as necessary, omit posting references. Calculate the new account balances at June 30, 2012.
3. Prepare the trial balance for Pure Water, Inc., at June 30,2012.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help