Quality Service Inc. has the following accounts balances in their charts of Occounts 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 $0, 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 6 transaction June 30. Paid utilities expense of $600 and salary expense $2,500 Requirements: 1. State the effect each transaction from June 1 -30h 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 30, 2020.
Quality Service Inc. has the following accounts balances in their charts of Occounts 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 $0, 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 6 transaction June 30. Paid utilities expense of $600 and salary expense $2,500 Requirements: 1. State the effect each transaction from June 1 -30h 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 30, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Quality Service Inc. has the following accounts balances in their charts of
Occounts 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 $0, 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 6 transaction
June 30.
Paid utilities expense of $600 and salary expense $2,500
Requirements:
1. State the effect each transaction from June 1st -30h 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 30h, 2020.
4. Having determined the account balances, represent this information using the
accounting equation.
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