Quality Service Inc. has the following accounts balances in their charts of accounts balances as at June 1, 2020: Cash $138,000; Accounts receivable $0, Land $ 30,000; Building $0; Supplies $0; Accounts payable $0, Notes payable $0; Quality-capital $70,000, Service revenue $98,000, Utilities, salary expense $0. The company also presented the following transactions for the month: June 1. Purchased supplies for $1000 on account June 4. Purchased a building for, $62,100 cash June 6. Performed service for a client on account, $12,000 June 10. Borrowed $7,000 cash, signing a note payable June 13 Paid the liability from June 1 June 17. Sold for $15,000 land that had cost this same amount June 21. Received $8000 cash from June 06 transaction June 30. Paid utilities expense of $600 and salary expense $2,500 Requirements: 1. State the effect each transaction from June 1st -30th will have on the accounting equation. For example, the transaction increased asset and increased capital; th transaction
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![June 21.
Received $8000 cash from June 06 transaction
June 30.
Paid utilities expense of $600 and salary expense $2,500
Requirements:
1. State the effect each transaction from June 1st 30th will have on the accounting
equation. For example, the transaction increased asset and increased capital the
transaction increased expenses and decreased cash, the transaction increased
asset and decreased asset, etc.
2. Prepare the journal entries with narrations to record the transactions for "June"
3. Post the transactions recorded in your journal to their respective "T" accounts and
balance off each account at June 30th 2020.
4. Having determined the account balances, represent this information using the
accounting equation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e124b1d-4f68-48fd-829e-d3bce10028ae%2Fb0a8ca63-30fb-48dd-85bd-4f30a66a01c2%2F6kdqw3_processed.jpeg&w=3840&q=75)
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Quality Service Inc. has the following accounts balances in their charts of
accounts balances as at June 1, 2020:
Cash $138,000, Accounts receivable $0, Land $ 30,000, Building $0, Supplies $0,
Accounts payable $0, Notes payable $0, Quality-capital $70,000, Service revenue
$98,000, Utilities, salary expense $0.
The company also presented the following transactions for the month:
June 1.
Purchased supplies for $1000 on account
June 4.
Purchased a building for, $62,100 cash
June 6.
Performed service for a client on account, $12,000
June 10.
Borrowed $7,000 cash, signing a note payable
June 13.
Paid the liability from June 1
June 17.
Sold for $15,000 land that had cost this same amount
June 21.
Received $8000 cash from June 06 transaction
June 30,
Paid utilities expense of $600 and salary expense $2,500
Requirements:
1. State the effect each transaction from June 1s-30th will have on the accounting
equation. For example, the transaction increased asset and increased capital; the
transaction increased exnenses and decreased cash: the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e124b1d-4f68-48fd-829e-d3bce10028ae%2Fb0a8ca63-30fb-48dd-85bd-4f30a66a01c2%2Fx7iexns_processed.jpeg&w=3840&q=75)
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