Roshaun Gould started a web consulting firm called Gould Solutions. He began operations and completed seven transactions
Question:
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 month’s 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"
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta