After several months of planning, Joane Cardinal started a

After several months of planning, Joane Cardinal started a haircutting business called “TheCutlery”. The following business activities occurred during it’s first month (June 2020) :1) On June 1st, Joane deposited $16,500 cash into a bank account of the organization2) On June 1st, purchased on credit tables & chairs (for the business) at TheBay store. Value$7,000 + tax3) On June 1st, purchased (on credit) an insurance coverage. Value $3,000, 6-months periodcoverage.4) Rent office : $500 per month; paid cash5) Provided services to customers (on credit). Value $6,000 + tax.6) Purchased supplies, cash ($4,000 + tax).7) Paid 40% of the debt to “The Bay” store8) Provided services to customers. Value $3,400 + tax. 20% of the customers paid cash,80% on credit.9) At the end of the month, Joane withdrew $400 cash for her personal use.10)Record depreciation (straight line method) on tables & chairs (see above). Residual valueis estimated at $1,500, using the assets for the next 8 years.11) At the end of the month, $2,800 of supplies were used.12) Do you think you should record another entry? If so, please record it.Required✓ Prepare journal entries and T accounts✓ Produce Trial balance and Financial statements (3 usual statements)✓ Close the month (prepare JE and report under “T accounts”)



Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors.
Best for online homework assistance.