Reference no: EM131251950
PRINCIPLES OF ACCOUNTING ASSIGNMENT -
Problem -
Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.
Transactions on May 1:
1. Jay BradFord invested $40,000 cash in the company, as its sole owner.
2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,500 per month.
3. Signed a 2year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $33,000. A cash payment of $12,000 was made immediately; the remainder will be paid in 6 months.
5. Paid $1,600 cash for a oneyear insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $600 cash.
7. Purchased more office supplies for $1,600 on account.
8. Total revenues earned were $21,000-$8,000 cash and $13,000 on account.
9. Paid $400 to suppliers for accounts payable due.
10. Received $2,800 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $400, to be paid next month.
12. Paid the monthly salaries of the two employees, totaling $5,000.
Required -
1. Prepare journal entries to record each of the events listed.
2. Post the journal entries to Taccounts.
3. Prepare a trial balance as of May 31, 2017.
Attachment:- Assignment.rar