Maquoketa

[logistic_guy]

$\displaystyle \text{Maquoketa}$ Services was formed on May $\displaystyle 1, 2017$. The following transactions took place during the first month.

Transactions on May $\displaystyle 1$:
$\displaystyle \bold{1.}$ Jay Bradford invested $\displaystyle \$40,000$ cash in the company, as its sole owner.
$\displaystyle \bold{2.}$ Hired two employees to work in the warehouse. They will each be paid a salary of $\displaystyle \$3,050$ per month.
$\displaystyle \bold{3.}$ Signed a $\displaystyle 2$-year rental agreement on a warehouse; paid $\displaystyle \$24,000$ cash in advance for the first year.
$\displaystyle \bold{4.}$ Purchased furniture and equipment costing $\displaystyle \$30,000$. A cash payment of $\displaystyle \$10,000$ was made immediately; the remainder will be paid in $\displaystyle 6$ months.
$\displaystyle \bold{5.}$ Paid $\displaystyle \$1,800$ cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
$\displaystyle \bold{6.}$ Purchased basic office supplies for $\displaystyle \$420$ cash.
$\displaystyle \bold{7.}$ Purchased more office supplies for $\displaystyle \$1,500$ on account.
$\displaystyle \bold{8.}$ Total revenues earned were $\displaystyle \$20,000$—$\displaystyle \$8,000$ cash and $\displaystyle \$12,000$ on account.
$\displaystyle \bold{9.}$ Paid $\displaystyle \$400$ to suppliers for accounts payable due.
$\displaystyle \bold{10.}$ Received $\displaystyle \$3,000$ from customers in payment of accounts receivable.
$\displaystyle \bold{11.}$ Received utility bills in the amount of $\displaystyle \$380$, to be paid next month.
$\displaystyle \bold{12.}$ Paid the monthly salaries of the two employees, totaling $\displaystyle \$6,100$.

Instructions

$\displaystyle \bold{(a)}$ Prepare $\displaystyle \text{journal entries}$ to record each of the events listed. (Omit explanations.)
$\displaystyle \bold{(b)}$ Post the journal entries to $\displaystyle \text{T}$-accounts.
$\displaystyle \bold{(c)}$ Prepare a $\displaystyle \text{trial balance}$ as of May $\displaystyle 31, 2017$.

 

[khansaheb]

$\displaystyle \text{Maquoketa}$ Services was formed on May $\displaystyle 1, 2017$. The following transactions took place during the first month.

Transactions on May $\displaystyle 1$:
$\displaystyle \bold{1.}$ Jay Bradford invested $\displaystyle \$40,000$ cash in the company, as its sole owner.
$\displaystyle \bold{2.}$ Hired two employees to work in the warehouse. They will each be paid a salary of $\displaystyle \$3,050$ per month.
$\displaystyle \bold{3.}$ Signed a $\displaystyle 2$-year rental agreement on a warehouse; paid $\displaystyle \$24,000$ cash in advance for the first year.
$\displaystyle \bold{4.}$ Purchased furniture and equipment costing $\displaystyle \$30,000$. A cash payment of $\displaystyle \$10,000$ was made immediately; the remainder will be paid in $\displaystyle 6$ months.
$\displaystyle \bold{5.}$ Paid $\displaystyle \$1,800$ cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
$\displaystyle \bold{6.}$ Purchased basic office supplies for $\displaystyle \$420$ cash.
$\displaystyle \bold{7.}$ Purchased more office supplies for $\displaystyle \$1,500$ on account.
$\displaystyle \bold{8.}$ Total revenues earned were $\displaystyle \$20,000$—$\displaystyle \$8,000$ cash and $\displaystyle \$12,000$ on account.
$\displaystyle \bold{9.}$ Paid $\displaystyle \$400$ to suppliers for accounts payable due.
$\displaystyle \bold{10.}$ Received $\displaystyle \$3,000$ from customers in payment of accounts receivable.
$\displaystyle \bold{11.}$ Received utility bills in the amount of $\displaystyle \$380$, to be paid next month.
$\displaystyle \bold{12.}$ Paid the monthly salaries of the two employees, totaling $\displaystyle \$6,100$.

Instructions

$\displaystyle \bold{(a)}$ Prepare $\displaystyle \text{journal entries}$ to record each of the events listed. (Omit explanations.)
$\displaystyle \bold{(b)}$ Post the journal entries to $\displaystyle \text{T}$-accounts.
$\displaystyle \bold{(c)}$ Prepare a $\displaystyle \text{trial balance}$ as of May $\displaystyle 31, 2017$.

Please show us what you have tried and exactly where you are stuck.

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Please share your work/thoughts about this problem

 

[logistic_guy]

$\displaystyle \bold{1.}$ Jay Bradford invested $\displaystyle \$40,000$ cash in the company, as its sole owner.

1​	Account​	Debit​	Credit​
	Cash​	40,000​	​
	Owner's Capital​	​	40,000​

 

[khansaheb]

exactly where you are stuck.

 

[logistic_guy]

exactly where you are stuck.

Thank you Sir khan.

 

[logistic_guy]

$\displaystyle \bold{2.}$ Hired two employees to work in the warehouse. They will each be paid a salary of $\displaystyle \$3,050$ per month.

No economic transaction was done here so no journal entry is needed.

 

[logistic_guy]

$\displaystyle \bold{3.}$ Signed a $\displaystyle 2$-year rental agreement on a warehouse; paid $\displaystyle \$24,000$ cash in advance for the first year.

3​	Account​	Debit​	Credit​
	Prepaid Rent​	24,000​	​
	Cash​	​	24,000​

 

[logistic_guy]

$\displaystyle \bold{4.}$ Purchased furniture and equipment costing $\displaystyle \$30,000$. A cash payment of $\displaystyle \$10,000$ was made immediately; the remainder will be paid in $\displaystyle 6$ months.

4​	Account​	Debit​	Credit​
	Furniture and Equipment​	30,000​	​
	Cash​	​	10,000​
	Accounts Payable​		20,000​

 

[logistic_guy]

$\displaystyle \bold{5.}$ Paid $\displaystyle \$1,800$ cash for a one-year insurance policy on the furniture and equipment.

5​	Account​	Debit​	Credit​
	Prepaid Insurance​	1,800​	​
	Cash​	​	1,800​

 

[logistic_guy]

$\displaystyle \bold{6.}$ Purchased basic office supplies for $\displaystyle \$420$ cash.

6​	Account​	Debit​	Credit​
	Office Supplies​	420​	​
	Cash​	​	420​

 

[logistic_guy]

$\displaystyle \bold{7.}$ Purchased more office supplies for $\displaystyle \$1,500$ on account.

7​	Account​	Debit​	Credit​
	Office Supplies​	1,500​	​
	Accounts Payable​	​	1,500​

 

[logistic_guy]

$\displaystyle \bold{8.}$ Total revenues earned were $\displaystyle \$20,000$—$\displaystyle \$8,000$ cash and $\displaystyle \$12,000$ on account.

8​	Account​	Debit​	Credit​
	Cash​	8,000​	​
	Accounts Receivable​	12,000​
	Service Revenue​	​	20,000​

 

[logistic_guy]

$\displaystyle \bold{9.}$ Paid $\displaystyle \$400$ to suppliers for accounts payable due.

9​	Account​	Debit​	Credit​
	Accounts Payable​	400​
	Cash​	​	400​

 

[logistic_guy]

$\displaystyle \bold{10.}$ Received $\displaystyle \$3,000$ from customers in payment of accounts receivable.

10​	Account​	Debit​	Credit​
	Cash​	3,000​
	Accounts Receivable​	​	3,000​