Following is the chart of accounts of Smith Financial Services: Assets 111 Cash 113 Accounts Receivable 115 Supplies 117 Prepaid Insurance 124 Office Furniture Liabilities 221 Accounts Payable Owner’s Equity 311 A. Smith, Capital 312 A. Smith, Drawing Revenue 411 Professional Fees Expenses 511 Salary Expense 512 Rent Expense 513 Advertising Expense 514 Utilities Expense Smith completed the following transactions during June (the first month of business): June 1 Smith deposited $10,000 in a bank account in the name of the business. 3 Sold financial services on account to W. Johnson, $3,030, Inv. No. 001. 8 Paid a bill for advertising, $100, Ck. No. 200. 9 Bought supplies on account from Jones Supply, $75, Inv. No. 405. 13 Performed financial services for clients for cash, $3,200. 17 Received and paid the bill for utilities, $104, Ck. No. 201. 19 Bought a desk and chair from Davis Furniture, $600, paying $50 in cash and placing the balance on account, Ck. No. 202. 20 Bought liability insurance for one year, $600, Ck. No. 203. 23 Paid the rent for the current month, $400, Ck. No. 204. 27 Paid on account to Jones Supply, $75, for supplies purchased on June 9, Ck. No. 205. 29 Received $3,030 from W. Johnson for services performed on June 3. 29 Received and paid the telephone bill for the month, $80, Ck. No. 206. 30 Paid the salary of the office assistant, $600, Ck. No. 207. 30 Smith withdrew cash for her personal use, $800, Ck. No. 208. Required Journalize the transactions for June in the general journal. Post the entries to the general ledger accounts. (Skip this step if you are using CLGL.) Prepare a trial balance as of June 30, 20--. Prepare an income statement for the month ended June 30, 20--. Prepare a statement of owner’s equity for the month ended June 30, 20--. Prepare a balance sheet as of June 30, 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assets

111 Cash
113 Accounts Receivable
115 Supplies
117 Prepaid Insurance
124 Office Furniture

Liabilities

221 Accounts Payable

Owner’s Equity

311 A. Smith, Capital
312 A. Smith, Drawing

Revenue

411 Professional Fees

Expenses

511 Salary Expense
512 Rent Expense
513 Advertising Expense
514 Utilities Expense

Smith completed the following transactions during June (the first month of business):

June	1	Smith deposited $10,000 in a bank account in the name of the business.
	3	Sold financial services on account to W. Johnson, $3,030, Inv. No. 001.
	8	Paid a bill for advertising, $100, Ck. No. 200.
	9	Bought supplies on account from Jones Supply, $75, Inv. No. 405.
	13	Performed financial services for clients for cash, $3,200.
	17	Received and paid the bill for utilities, $104, Ck. No. 201.
	19	Bought a desk and chair from Davis Furniture, $600, paying $50 in cash and placing the balance on account, Ck. No. 202.
	20	Bought liability insurance for one year, $600, Ck. No. 203.
	23	Paid the rent for the current month, $400, Ck. No. 204.
	27	Paid on account to Jones Supply, $75, for supplies purchased on June 9, Ck. No. 205.
	29	Received $3,030 from W. Johnson for services performed on June 3.
	29	Received and paid the telephone bill for the month, $80, Ck. No. 206.
	30	Paid the salary of the office assistant, $600, Ck. No. 207.
	30	Smith withdrew cash for her personal use, $800, Ck. No. 208.

Required

Journalize the transactions for June in the general journal.
Post the entries to the general ledger accounts. (Skip this step if you are using CLGL.)
Prepare a trial balance as of June 30, 20--.
Prepare an income statement for the month ended June 30, 20--.
Prepare a statement of owner’s equity for the month ended June 30, 20--.
Prepare a balance sheet as of June 30, 20--.

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