Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May: Jay Bradford invested $40,000 cash in the company, as its sole owner. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment. Purchased basic office supplies for $2420 cash. Purchased more office supplies for $1,500 on account. Total revenues earned were $20,000—$8,000 cash and $12,000 on account. Paid $400 to suppliers for accounts payable due. Received $3,000 from customers in payment of accounts receivable. Received utility bills in the amount of $380, to be paid next month. Paid the monthly salaries of the two employees, totaling $6,100Instructions: (a) Journalize and post the May transactions.
Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May: Jay Bradford invested $40,000 cash in the company, as its sole owner. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment. Purchased basic office supplies for $2420 cash. Purchased more office supplies for $1,500 on account. Total revenues earned were $20,000—$8,000 cash and $12,000 on account. Paid $400 to suppliers for accounts payable due. Received $3,000 from customers in payment of accounts receivable. Received utility bills in the amount of $380, to be paid next month. Paid the monthly salaries of the two employees, totaling $6,100Instructions: (a) Journalize and post the May transactions.
Chapter12: Current Liabilities
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Problem 13EB: Marc Associates employs Janet Evanovich at its law firm. Her gross income for June is $7,500....
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Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May:
- Jay Bradford invested $40,000 cash in the company, as its sole owner.
- Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
- Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
- Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
- Purchased basic office supplies for $2420 cash.
- Purchased more office supplies for $1,500 on account.
- Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
- Paid $400 to suppliers for accounts payable due.
- Received $3,000 from customers in payment of accounts receivable.
- Received utility bills in the amount of $380, to be paid next month.
- Paid the monthly salaries of the two employees, totaling $6,100Instructions:
(a) Journalize and
(b) Prepare a
(c) Enter the following adjustments.
(1) Unbilled and uncollected revenue for services performed at May 31 were $2,700.
(2) Depreciation on equipment for the month was $500.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $600 of cleaning supplies on hand at May 31.
(5) Accrued but unpaid employee salaries were $1,000.
(d) Prepare adjusted trial balance
(e) Prepare the income statement and owner’s equity statement for May and a balance sheet at May 31.
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