Question : 222. Journalize the following selected transactions for April 2011 in a : 1239524

 

222. Journalize the following selected transactions for April 2011 in a two-column journal.  Journal entry explanations may be omitted. 

April 1

Received cash for capital stock, $14,000.

2

Received cash for providing accounting services, $9,500.

3

Billed customers on account for providing services, $4,200.

4

Paid advertising expense, $700.

5

Received cash from customers on account, $2,500.

6

Paid cash dividends, $1,000.

7

Received telephone bill, $900.

8

Paid telephone bill, $900.

 

 

 

Date

Description

Post. Ref.

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

223. Analyze the following transactions as to their effect on the accounting equation. 

(a)

The company paid $725 to a vendor for supplies purchased previously on account.

(b)

The company performed $850 of services and billed the customer.

(c)

The company received a utility bill for $395 and will pay it next month.

(d)

The stockholder of the company received a cash dividend of $1,000.

(e)

The company paid $315 in salaries to its employees.

(f)

The company collected $730 of cash from its customers on account.

 

 

Some of the possible effects of a transaction on the accounting equation are listed below: 

(1)

Asset, dr.; Asset, cr.

(2)

Liability, dr.; Revenue, cr.

(3)

Asset, dr.; Liability, cr.

(4)

Asset, dr.; Revenue, cr.

(5)

Liability, dr.; Assets, cr.

(6)

Equity, dr.; Asset, cr.

(7)

Expense, dr.; Assets, cr.

(8)

Expense, dr.; Liability, cr.

 

 

Put the appropriate letter next to each transaction. 

 

 

 

 

 

224. Set up T accounts for Cash, Accounts Receivable, Supplies, Accounts Payable, Capital Stock, Dividends, Professional Fees, and Operating Expenses. 

(a)

In the T accounts, record the following transactions of Potter Pool Services for June, 2011, identifying each entry by number:

 

(1)

Dan Potter invested $12,500 cash in the business in exchange for stock.

 

(2)

Purchased supplies on account, $6,250.

 

(3)

Paid operating expenses, $5,500.

 

(4)

Billed clients for fees, $7,440.

 

(5)

Received cash from cash clients, $4,700.

 

(6)

Paid creditors on account, $1,400.

 

(7)

Received $3,100 from clients on account.

 

(8)

The company paid Dan $1,500 in cash dividends.

 

 

(b)

Prepare a trial balance as of June 30, 2011 for Potter Pool Services.

 

 

(c)

Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June, determine net income for the month.