In June 2019, Ian Lee opened a photography studio that provides services to public and private schools.

Question:

In June 2019, Ian Lee opened a photography studio that provides services to public and private schools. His 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 Ian Lee, Capital

302 Ian Lee, 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 Ian Lee invested $20,000 cash in the business.

2 Issued Check 1001 for $2,000 to pay the June rent.

5 Purchased desks and other office furniture for $9,500 from Office Supply, Inc.;

received Invoice 5312, payable in 60 days.

6 Issued Check 1002 for $2,100 to purchase photographic equipment.

7 Purchased supplies for $550; paid with Check 1003.

10 Issued Check 1004 for $800 for office cleaning service.

12 Performed services for $2,600 in cash and $2,600 on credit. (Use one compound entry.)

15 Returned damaged supplies; received a $180 cash refund.

18 Purchased a computer for $2,250 from Dallas 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 Office Supply, Inc., as payment on account for office furniture, Invoice 5312.

26 Performed services for $2,500 on credit.

27 Paid $632 for monthly telephone bill; issued Check 1007

30 Received $2,300 in cash from credit clients on account.

30 Issued Check 1008 to pay the monthly utility bill of $750.

30 Issued Checks 1009-1011 for $6,550 for salaries.

Analyze: What was the Cash account balance after the transaction of June 27 was recorded?

Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

College Accounting A Contemporary Approach

ISBN: 978-0077639730

4th edition

Authors: David Haddock, John Price, Michael Farina

Question Posted: