On May 1, 2014, Leon Stoker opened Stoker's Repair Service. During the month, he completed the...

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On May 1, 2014, Leon Stoker opened Stoker's Repair Service. During the month, he completed the following transactions for the company: May: 1 st Began business by depositing $10,000 in a bank account in the name of the company. 1st Paid the rent for the store for current month, $850. 1st Paid the premium on a one-year insurance policy, $960, in advance. 2nd Purchased repair equipment from Latin Company, $8,400. Terms were $1,200 down and $600 per month for one year. First payment is due June 1. 5th Purchased repair supplies from Tanaka Company on credit, $936. 8th Paid cash for an advertisement in a local newspaper, $120. 15th Received cash repair revenue for the first half of the month, $800. 21st Paid Tanaka Company on account, $450. 31st Received cash repair revenue for the last half of May, $1,950. 31st Made a withdrawal, $600. During June, Leon Stoker completed these transactions for Stoker's Repair Service. June: 1st Paid the monthly rent, $850. 1st Made the monthly payment to Latin Company, $600. 6th Purchased additional repair supplies on credit from Tanaka Company, $1,726. 15th Received cash repair revenue for the first half of the month, $1,828. 20th Paid cash for an advertisement in the local newspaper, $120. 23rd Paid Tanaka Company on account, $1,200. 30th Received cash repair revenue for the last half of the month, $1,634. 30th Recorded a withdrawal by owner, $600. Additional data: The remaining inventory of unused repair supplies is $338 as at 31/5/2014 and $826 as at 30/6/2014. The repair equipment was estimated to have a useful life of 5 years and nil residual value. Requirements: 1. Open the following accounts: Cash; Prepaid Insurance; Repair Supplies; Repair Equipment; Accumulated Depreciation - Repair Equipment; Accounts Payable; Capital - L. Stoker; Withdrawals - L. Stoker; Income Summary; Repair Revenue; Store Rent Expense; Advertising Expense; Insurance Expense; Repair Supplies Expense; and Depreciation Expense- Repair Equipment. 2. Journalize all transactions incurred in May and June. 3. Post the transactions to their ledgers. (Use format of T-account with balance c/d and balance b/d). 4. Prepare an adjusted trial balance as at 30/6/2014. 5. Prepare a Balance Sheet (Statement of Financial Position) as at and an Income Statement (Statement of Financial Performance) for the period ended 30/6/2014. On May 1, 2014, Leon Stoker opened Stoker's Repair Service. During the month, he completed the following transactions for the company: May: 1 st Began business by depositing $10,000 in a bank account in the name of the company. 1st Paid the rent for the store for current month, $850. 1st Paid the premium on a one-year insurance policy, $960, in advance. 2nd Purchased repair equipment from Latin Company, $8,400. Terms were $1,200 down and $600 per month for one year. First payment is due June 1. 5th Purchased repair supplies from Tanaka Company on credit, $936. 8th Paid cash for an advertisement in a local newspaper, $120. 15th Received cash repair revenue for the first half of the month, $800. 21st Paid Tanaka Company on account, $450. 31st Received cash repair revenue for the last half of May, $1,950. 31st Made a withdrawal, $600. During June, Leon Stoker completed these transactions for Stoker's Repair Service. June: 1st Paid the monthly rent, $850. 1st Made the monthly payment to Latin Company, $600. 6th Purchased additional repair supplies on credit from Tanaka Company, $1,726. 15th Received cash repair revenue for the first half of the month, $1,828. 20th Paid cash for an advertisement in the local newspaper, $120. 23rd Paid Tanaka Company on account, $1,200. 30th Received cash repair revenue for the last half of the month, $1,634. 30th Recorded a withdrawal by owner, $600. Additional data: The remaining inventory of unused repair supplies is $338 as at 31/5/2014 and $826 as at 30/6/2014. The repair equipment was estimated to have a useful life of 5 years and nil residual value. Requirements: 1. Open the following accounts: Cash; Prepaid Insurance; Repair Supplies; Repair Equipment; Accumulated Depreciation - Repair Equipment; Accounts Payable; Capital - L. Stoker; Withdrawals - L. Stoker; Income Summary; Repair Revenue; Store Rent Expense; Advertising Expense; Insurance Expense; Repair Supplies Expense; and Depreciation Expense- Repair Equipment. 2. Journalize all transactions incurred in May and June. 3. Post the transactions to their ledgers. (Use format of T-account with balance c/d and balance b/d). 4. Prepare an adjusted trial balance as at 30/6/2014. 5. Prepare a Balance Sheet (Statement of Financial Position) as at and an Income Statement (Statement of Financial Performance) for the period ended 30/6/2014.

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On May 1 2014 Leon Stoker opened Stokers Repair Service During the month he completed the following transactions for the company May 1 Began business by depositing 10000 in a bank account in the name ... View the full answer