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.