Saif is a licensed CPA (Accounting and Auditing Firm). During the first month of operations of his business, the following events and transactions occurred. May 1 Saif invested $20,000 cash in her business. 2 Hired a secretary at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on account from Green Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed a customer $3,200 for services performed. 12 Received $3,500 advance on a management consulting engagement. 17 Received cash of $1,200 for services performed for White Company 31 Paid the secretary $2,000 salary for the month. 31 Paid 60% of balance due Green Supply Company. Required: Journalize the above transactions. Post to the ledger accounts. Prepare a trial balance on May 31, 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Saif is a licensed CPA (Accounting and Auditing Firm). During the first month of operations of his business, the following events and transactions occurred.

May 1 Saif invested $20,000 cash in her business.

2 Hired a secretary at a salary of $2,000 per month.

3 Purchased $2,500 of supplies on account from Green Supply Company.

7 Paid office rent of $900 cash for the month.

11 Completed a tax assignment and billed a customer $3,200 for services performed.

12 Received $3,500 advance on a management consulting engagement.

17 Received cash of $1,200 for services performed for White Company

31 Paid the secretary $2,000 salary for the month.

31 Paid 60% of balance due Green Supply Company.

Required:

  1. Journalize the above transactions.
  2. Post to the ledger accounts.
  3. Prepare a trial balance on May 31, 2020.

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