"Problem 2-6B

Analyzing account balances and reconstructing transactions

P1 A1

Roshaun Gould started a web consulting firm called Gould Solutions. He began operations and completed seven transactions in April that resulted in the following accounts, which all have normal balances.

Cash	$20,000	Office equipment	$12,000	R. Gould, Withdrawals	$5,200
Office supplies	750	Account payable	12,250	Consulting revenue	20,400
Prepaid rent	1,800	R. Gould, Capital	15,000	Miscellaneous expenses	7,650

Required

1. Prepare a trial balance for this business as of the end of April.

962. The following seven transactions produced the account balances shown above.

a. Gould invested $15,000 cash in the business.

b. Paid $1,800 cash in advance for next months rent expense.

c. Paid $7,650 cash for miscellaneous expenses.

d. Purchased office supplies for $750 cash.

e. Purchased $12,250 of office equipment on credit (with accounts payable).

f. Received $20,400 cash for consulting services provided in April.

g. Gould withdrew $5,200 cash from the company for personal use.

Prepare a Cash T-account, enter the cash effects (if any) of each transaction, and compute the ending Cash balance. Code each entry in the T-account with one of the transaction codes a through g.

Check (1) Trial balance totals, $47,650

(2) Ending Cash balance, $20,000"