Excercise 3-13

Exercise 3-11 Determining an Ending Account Balance (Appendix) L.45 sAccounting Services was organized on June 1. The company received a contribution of EXAMPLE 3-2, 3 1000 from each of the two principal owners. During the month, Jessie's Accounting Services pro- vided services for cash of $1,400 and services on account for $450, received $250 from customersS yment of their accounts, purchased supplies on account for $600 and equipment on account Show me how 350, received a utility bill for $250 that will not be paid until July, and paid the full amount due on the eq uipment. Use a T account to determine the company's Cash balance on June 30. Exercise 3-12 Reconstructing a Beginning Account Balance (Appendix) Lo3 4.5 During the month, services performed for customers on account amounted to $7,500 and collec. EXAMPLE 3-2, tions from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts Receivable account had a balance of $2,500. What was the Accounts Receivable balance at the beginning of the month Exercise 3-13 Journal Entries Recorded Directly in T Accounts (Appendix) L03.4.5 Record each of the following transactions directly in T accounts using the numbers preceding the EXAMPLE 3 transactions to identify them in the accounts. Each account needs a separate T account 1. Received contribution of $6,500 from each of the three principal owners of We Go Delivery Service in exchange for shares of stock. 2. Purchased office supplies for cash of $130 Purchased a van for $15,000 on an open account. The company has 25 days to pay for the van. 4. 3. Provided delivery services to residential customers for cash of $125. 5. Billed a local business $200 for delivery services. The customer is to pay the bill within 15 days. Paid the amount due on the van. 7. 6. Received the amount due from the local business billed in (5) LO4 7 Exercise 3-14 Trial Balance (Appendix) Refer to the transactions recorded directly in T accounts for We-Go Delivery Service in Exercise EXAMPLE 3-13. Assume that all of the transactions took place during December. Prepare a trial balance at December 31. L03.5 EXAMPLE Exercise 3-15 Journal Entries (Appendix) Prepare the journal entry to record cach of the following independent transactions. (Use the number of the transaction in lieu of a date for identification purposes.) 1. Services provided on account of $1,530 2. Purchases of supplies on account for $1,365 Continued)