Exercise 2-20 (Algo) Record transactions, post to T-accounts, and prepare a trial balance (LO2-4, 2-5, 2-6) Greenstream Painting Company incurs the following transactions for September. 1. September 3 Paint houses in the current month for $11,000 on account. Purchase painting equipment for $12,000 cash. 2. September 8 3. September 12 Purchase office supplies on account for $1,700. 4. September 15 Pay employee salaries of $2,400 for the current month. 5. September 19 Purchase advertising to appear in the current month for $1,200 cash. 6. September 22 Pay office rent of $3,600 for the current month. 7. September 26 Receive $6,000 from customers in (1) above. 8. September 30 Receive cash of $4,200 in advance from a customer who plans to have his house painted in the following month. Required: 1. Record each transaction. 2. Post each transaction to T-accounts and calculate the ending balance for each account. At the beginning of September, the company had the following account balances: Cash, $37,100; Accounts Receivable, $800; Supplies, $320; Equipment, $5,600; Accounts Payable, $700; Common Stock, $16,000; Retained Earnings, $27,120. All other accounts had a beginning balance of zero. 3. Prepare a trial balance.
Exercise 2-20 (Algo) Record transactions, post to T-accounts, and prepare a trial balance (LO2-4, 2-5, 2-6) Greenstream Painting Company incurs the following transactions for September. 1. September 3 Paint houses in the current month for $11,000 on account. Purchase painting equipment for $12,000 cash. 2. September 8 3. September 12 Purchase office supplies on account for $1,700. 4. September 15 Pay employee salaries of $2,400 for the current month. 5. September 19 Purchase advertising to appear in the current month for $1,200 cash. 6. September 22 Pay office rent of $3,600 for the current month. 7. September 26 Receive $6,000 from customers in (1) above. 8. September 30 Receive cash of $4,200 in advance from a customer who plans to have his house painted in the following month. Required: 1. Record each transaction. 2. Post each transaction to T-accounts and calculate the ending balance for each account. At the beginning of September, the company had the following account balances: Cash, $37,100; Accounts Receivable, $800; Supplies, $320; Equipment, $5,600; Accounts Payable, $700; Common Stock, $16,000; Retained Earnings, $27,120. All other accounts had a beginning balance of zero. 3. Prepare a trial balance.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Exercise 2-20 (Algo) Record transactions, post to T-accounts, and prepare a trial balance (LO2-4, 2-5, 2-6)
Greenstream Painting Company incurs the following transactions for September.
1. September 3 Paint houses in the current month for $11,000 on account.
2. September 8 Purchase painting equipment for $12,000 cash.
3. September 12 Purchase office supplies on account for $1,700.
4. September 15 Pay employee salaries of $2,400 for the current month.
5. September 19 Purchase advertising to appear in the current month for $1,200 cash.
6. September 22 Pay office rent of $3,600 for the current month.
7. September 26 Receive $6,000 from customers in (1) above.
8. September 30 Receive cash of $4,200 in advance from a customer who plans to have his house painted in the following month.
Required:
1. Record each transaction.
2. Post each transaction to T-accounts and calculate the ending balance for each account. At the beginning of September, the company had the following account
balances: Cash, $37,100; Accounts Receivable, $800; Supplies, $320; Equipment, $5,600; Accounts Payable, $700; Common Stock, $16,000; Retained Earnings, $27,120. All
other accounts had a beginning balance of zero.
3. Prepare a trial balance.
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