Question :
81. M. Shay & Company, Inc.The bookkeeper for M. Shay & : 1224865
81. M. Shay & Company, Inc.The bookkeeper for M. Shay & Company, Inc. prepared the following journal entries and posted them to the general ledger as indicated in the T-accounts presented. Assume that the dollar amounts and descriptions of the entries are correct.Journal (partial):
Date
Accounts and Explanations
Debit
Credit
May 5
Accounts Receivable
1,600
Service Revenue
1,600
Billed customers for services completed
May 11
Cash
500
Service Revenue
500
Collected from a customer billed on May 1 for services rendered
May 15
Office Supplies
700
Accounts Payable
700
Purchased furniture on credit; payment due in 30 days
May 25
Office Furniture
700
Cash
700
Paid the furniture bill received on May 15
General Ledger (partial):
Accounts Receivable
Service Revenue
Office Furniture
5/5
5/5
5/11
5/25
1,600
1,600
500
700
Cash
Accounts Payable
Office Supplies
5/11
5/15
5/15
500
700
700
Refer to the information presented for M. Shay & Company, Inc. Would the errors in recording journal entries and in posting the journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.
82. Inferex CorporationThe following transactions were incurred by the Inferex Corporation during June 2012.
June 1
Inferex purchased a vehicle for $19,400, paying $1,400 now and issuing a note payable for the balance; the note is due in monthly installments of $500 plus 10% interest on the unpaid principal balance.
June 8
Inferex recorded service revenue earned; $25,000 cash from customers and $45,000 for customers billed for completed services.
June 22
Inferex issued common stock in exchange for land having a fair value of $65,000.
June 30
An invoice for $1,400 was received from the company’s advertising agency for radio and television ads which were run during June; the invoice is due in 30 days.
Refer to the information presented for Inferex Corporation. Indicate the economic effects of each transaction above on the accounting equation. Use the following format for your answers. Show the dollar amounts in the appropriate columns and use a plus (+) sign to indicate an increase and a minus (-) sign to indicate a decrease.
83. Inferex CorporationThe following transactions were incurred by the Inferex Corporation during June 2012.
June 1
Inferex purchased a vehicle for $19,400, paying $1,400 now and issuing a note payable for the balance; the note is due in monthly installments of $500 plus 10% interest on the unpaid principal balance.
June 8
Inferex recorded service revenue earned; $25,000 cash from customers and $45,000 for customers billed for completed services.
June 22
Inferex issued common stock in exchange for land having a fair value of $65,000.
June 30
An invoice for $1,400 was received from the company’s advertising agency for radio and television ads which were run during June; the invoice is due in 30 days.
Refer to the information presented for Inferex Corporation. Record each transaction in proper journal entry format in the journal provided. A written explanation for each journal entry is not required.
