.  In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number: Shareholders invested $12,500 cash in the business by purchasing common stock. Purchased supplies on account, $6,250. Paid operating expenses, $5,500. Billed clients for fees, $7,440. Received cash from cash clients, $4,700. Paid creditors on account, $1,400. Received $3,100 from clients on account

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. a.  In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:

    1. Shareholders invested $12,500 cash in the business by purchasing common stock.
    2. Purchased supplies on account, $6,250.
    3. Paid operating expenses, $5,500.
    4. Billed clients for fees, $7,440.
    5. Received cash from cash clients, $4,700.
    6. Paid creditors on account, $1,400.
    7. Received $3,100 from clients on account.
    8. Paid $1,500 cash dividends.
    Cash
     
    fill in the blank ae5b68fd6029fa1_2
     
    fill in the blank ae5b68fd6029fa1_4
     
    fill in the blank ae5b68fd6029fa1_6
     
    fill in the blank ae5b68fd6029fa1_8
     
    fill in the blank ae5b68fd6029fa1_10
     
    fill in the blank ae5b68fd6029fa1_12
    Bal. fill in the blank ae5b68fd6029fa1_13    

    Accounts Receivable
     
    fill in the blank ae5b68fd6029fa1_15
     
    fill in the blank ae5b68fd6029fa1_17
    Bal. fill in the blank ae5b68fd6029fa1_18    

    Supplies
     
    fill in the blank ae5b68fd6029fa1_20    

    Accounts Payable
     
    fill in the blank ae5b68fd6029fa1_22
     
    fill in the blank ae5b68fd6029fa1_24
        Bal. fill in the blank ae5b68fd6029fa1_25

    Common Stock
       
     
    fill in the blank ae5b68fd6029fa1_27

    Dividends
     
    fill in the blank ae5b68fd6029fa1_29    

    Professional Fees
       
     
    fill in the blank ae5b68fd6029fa1_31
       
     
    fill in the blank ae5b68fd6029fa1_33
        Bal. fill in the blank ae5b68fd6029fa1_34

    Operating Expenses
     
    fill in the blank ae5b68fd6029fa1_36    
     

    b.  Prepare a trial balance as of June 30 for Potter Pool Services.

    Potter Pool ServicesTrial BalanceJune 30
     
    - Select - - Select -
     
    - Select - - Select -
     
    - Select - - Select -
     
    - Select - - Select -
     
    - Select - - Select -
     
    - Select - - Select -
     
    - Select - - Select -
     
    - Select - - Select -
      fill in the blank 70bea5fae044fad_25 fill in the blank 70bea5fae044fad_26
     

    c.  Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June, determine the following:

    (1) Net income for the month. $fill in the blank e1f94afaa010f83_1
    (2) Stockholders' equity as of June 30. $fill in the blank e1f94afaa010f83_2
     
     
 
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