For the past several years, Harry Williams has operated a computer repair service in his home on a part-time basis. As of June 9, Williams decided to move to rented quarters and to devote full time to the business, which was to be known as Williams CR. Williams CR entered into the following transactions during June: June 1. The following assets were received from Harry Williams: cash $6,000; accounts receivable $1,000; supplies $1,250 and service equipment $6,200. There were no liabilities received. 2.Paid three months rent on a lease rental contract $2,400 2.Paid the premiums on property and casualty insurance policies $1,800 4.Purchased additional service equipment on account from Morrison Company $2,000 6.Received cash from customers on account, $600 9.Paid cash for a newspaper advertisement, $80 11.Paid Morrison Company for part of the debt incurred on June 4, $1,100 12.Recorded sales on account for the period Jun 1-12, $1,200 13.Paid receptionist for two weeks salary, $400 17.Recorded cash from cash customers for service revenue earned during the first half of June, $2,100 17.Paid cash for supplies $950 20.Recorded sales on account for the period June 13-20, $1,100 24.Recorded cash from cash customers for service revenue earned during the period June 17-24, $1,850 27.Received cash from customers on account, $1,200 27.Paid receptionist for two weeks salary, $400 30.Paid telephone bill for June, $65 30.Paid electricity bill for June, $140 30.Recorded cash from cash customers for service revenue earned for the period June 25-30, $850 30.Recorded sales on account for the reminder of June, $500 30.Williams withdrew $1,200 for personal use. Instruction: Open a ledger of four-column accounts for Wlliams CR, using the following titles and accounts numbers: Cash, 11; Accounts Receivable, 12; Supplies, 14; Prepaid Rent, 15; Prepaid Insurance, 16; Service Equipment, 18; Accumulated Depreciation, 19; Accounts Payable, 21; Salaries Payable, 22; Harry Williams, Capital, 31; Harry Williams, Drawings, 32; Income Summary, 33; Service Revenue, 41; Salary Expense, 51; Rent Expense, 52; Supplies Expense, 53; Depreciation Expense, 54; Insurance Expense, 55; Miscellaneous Expense, 59.
For the past several years, Harry Williams has operated a computer repair service in his home on a part-time basis. As of June 9, Williams decided to move to rented quarters and to devote full time to the business, which was to be known as Williams CR. Williams CR entered into the following transactions during June:
June
1. The following assets were received from Harry Williams: cash $6,000;
2.Paid three months rent on a lease rental contract $2,400
2.Paid the premiums on property and casualty insurance policies $1,800
4.Purchased additional service equipment on account from Morrison Company $2,000
6.Received cash from customers on account, $600
9.Paid cash for a newspaper advertisement, $80
11.Paid Morrison Company for part of the debt incurred on June 4, $1,100
12.Recorded sales on account for the period Jun 1-12, $1,200
13.Paid receptionist for two weeks salary, $400
17.Recorded cash from cash customers for service revenue earned during the first half of June, $2,100
17.Paid cash for supplies $950
20.Recorded sales on account for the period June 13-20, $1,100
24.Recorded cash from cash customers for service revenue earned during the period June 17-24, $1,850
27.Received cash from customers on account, $1,200
27.Paid receptionist for two weeks salary, $400
30.Paid telephone bill for June, $65
30.Paid electricity bill for June, $140
30.Recorded cash from cash customers for service revenue earned for the period June 25-30, $850
30.Recorded sales on account for the reminder of June, $500
30.Williams withdrew $1,200 for personal use.
Instruction:
Open a ledger of four-column accounts for Wlliams CR, using the following titles and accounts numbers:
Cash, 11; Accounts Receivable, 12; Supplies, 14; Prepaid Rent, 15; Prepaid Insurance, 16; Service Equipment, 18;
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