Potter invested $12,500 cash in the business. 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 c

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital; Clay Potter, Drawing; Professional Fees; and Operating Expenses.

If an amount box does not require an entry, leave it blank.

a.  In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:

  1. Potter invested $12,500 cash in the business.
  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. Withdrew $1,500 cash for personal use.

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

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

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