Post to T-Accounts and create an unadjusted trial balance

1. On July 1, 2019, Fred Freed invested $30,000 in exchange for 10,000 shares of stock in his newly formed corporation, Fred Corp. He formed it as both an accounting practice and an accounting memorabilia retailer.

2. On July 2, Fred Corp. borrowed $10,000 from Smalltown Bank by signing a note payable, promising to pay the money back in 6 months and paying 6% interest.

3. On July 5, Fred Corp. purchased a computer system for $2,000 cash.

4. On July 6, Fred Corp. paid $800 cash for office supplies from Office Delight.

5. On July 7, Fred Corp. purchased $1,800 in accounting memorabilia inventory on account from Bigly Smalls Inc.

6. On July 10, Fred Corp. hired a part-time bookkeeper for a salary of $400 per week.

7. On July 15, Fred Corp. sold inventory for $420 cash. The inventory cost $240.

8. On July 20, Fred Corp. completed consulting work for a client and sent them a bill for $2,400, payable in 30 days.

9. On July 22, Fred Corp. paid $150 for copying and binding services for July.

10. On July 31, Fred Corp. paid the bookkeeper for three weeks of work.

11. On July 31, Fred Corp. paid $300 of the amount they owe to Bigly Smalls.

12. On July 31, Fred Corp. received a $400 payment from the client whom they billed on July 20th.

13. On July 31, Fred Corp. paid a $500 dividend to Fred Freed

Answer rating: 100% (QA)

Common Stock Jul 1 End Credit 30000 30000 Jul 1 Jul 2 Jul 15 Jul 31 Cash 30000 Jul 5 10000 Jul 6 420 ... View the full answer