Reference no: EM13580076
These last two questions are giving me trouble. If anyone has any help to give me, I would truly appreciate it.
Exercise 7.18 (pages 207-208): The adjusted trial balance of Murphy%u2019s Taxi Service, Inc., follows. Determine the net income or loss for the month of May and the balance in the Retained Earnings account that would appear on the balance sheet.
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Murphy's Taxi Service, Inc.
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Adjusted Trial Balance
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May 31, 2010
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Debits
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Credits
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Cash
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$ 1,920
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Prepaid Insurance
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$ 690
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Automobiles
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$29,500
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A/D %u2013 Automobiles
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$12,800
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Capital Stock
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$15,000
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Retained Earnings
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$ 3,720
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Passenger fee revenue
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$ 4,250
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Salary expense
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$ 2,400
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Fuel expense
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$ 485
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Depreciation expense
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$ 615
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Repairs and maintenance expense
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$ 160
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Totals
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$35,770
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$35,770
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Problem 7.1 1 and 7 only (pages 208-209): Biando Corporation began operations on May 1, 2010 and completed the following transactions during its first month of operations.
A. Sold capital stock for $30,000.
B. Purchased land and building valued at $35,000 and $165,000, respectively, by paying $10,000 cash and signing a 20-year mortgage for the balance.
C. Purchased office equipment on account, $7,500.
D. Billed a customer for services performed, $5,000.
E. Received an $800 deposit from a customer for services to be performed next month.
F. Made a partial payment on account for the office equipment purchased in transaction (C), $1,500.
G. Performed a service and immediately collected $2,000.
H. Received and immediately paid the telephone bill for the month, $380.
I. Paid a dividend to owners, $3,000.
J. Received, but did not pay, the monthly utility bill, $450.
1. Prepare the general journal entries to record each of these events.