On June 2, 2017, Betty Rice opened Betty's Art Studio in Toronto. The following transactions occurred in June:
2017
June .... 2 Betty Rice invested $12,000 in the art studio.
........... 3 Paid three months' rent in advance, $1,200.
.......... 4 Purchased $600 worth of equipment from Astor Co. on account.
......... 6 Received $900 cash for art training workshop for teachers.
......... 9 Purchased $400 worth of art supplies for cash.
......... 10 Billed Lester Co. $2,100 for group art lessons for its employees.
........ 10 Paid salaries of assistants, $600.
........ 16 Betty withdrew $200 from the business for her personal use.
........ 27 Paid electrical expense, $140.
........ 30 Paid telephone bill for June, $210.
Required
a. The ledger is already set up for you based on the Chart of Accounts.
b. Journalize (using journal page 1) and post the June transactions.
c. Prepare a trial balance as of June 30, 2017.
The chart of accounts for Betty's Art Studio is as follows:
Chart of Accounts
Assets ............................................... Owner's Equity
111 Cash ................................... 311 Betty Rice, Capital
112 Accounts Receivable ........ 312 Betty Rice, Withdrawals
114 Prepaid Rent .....................................................
121 Art Supplies .......................................... Revenue
131 Equipment .............................. 411 Art Fees Earned
Liabilities .................................................. Expenses
211 Accounts Payable ................... 511 Electrical Expense
................................................. 521 Salaries Expense
............................................. 531 Telephone Expense