Assignment: Recording Business TransactionsSimons AC Services opens for business and completes these transactions in June of the current year.June1 John Simons, the owner, invests $39,000 cash along with office equipmentvalued at $15,000 in the company as company capital.2 The company prepaid $9,000 cash for 12 months' rent for office space.4 The company made credit purchases for $8,000 in office equipment and $2,400in office supplies. Payment is due within 10 days.8 The company completed work for a client and immediately received $2,380 cash.12 The company completed a $15,400 project for a client, who must pay within 30days.13 The company paid $10,400 cash to settle the payable created on the 4th.19 The company paid $1,900 cash for the premium on an 18-month insurancepolicy.22 The company received $7,700 cash as partial payment for the work completedon the 12th.24 The company completed work for another client for $2,300 on credit.28 The company paid John Simons $5,300 cash recorded as an owner withdrawal.29 The company purchased $550 of additional office supplies on credit.30 The company paid $960 cash for this month's utility bill.Instructions1. Prepare general journal entries to record these transactions using the accounts listed in Step 2.2. Open the following ledger accounts-their account numbers are in parentheses: Cash (101);Accounts Receivable (105); Office Supplies (124); Prepaid Insurance (130); Prepaid Rent (131);Office Equipment (163); Accounts Payable (201); John Simons, Capital (307); John Simons,Withdrawals (319); Service Fees Earned (401); and Utilities Expense (690).3. Post journal entries from Step 1 to the ledger accounts and enter the balance after each posting.4. Prepare a trial balance as of the end of June.

Journal entries:Journal entry records the accounting transactions of a business in a journal book.…

Simons AC Services opens for business and completes these transactions in June of the current year. June 1 John Simons, the owner, invests $39,000 cash along with office equipment valued at $15,000 in the company as company capital. 2 The company prepaid $9,000 cash for 12 months' rent for office space. 4 The company made credit purchases for $8,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. 8 The company completed work for a client and immediately received $2,380 cash.

Simons AC Services opens for business and completes these transactions in June of the current year. June 1 John Simons, the owner, invests $39,000 cash along with office equipment valued at $15,000 in the company as company capital. 2 The company prepaid $9,000 cash for 12 months' rent for office space. 4 The company made credit purchases for $8,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. 8 The company completed work for a client and immediately received $2,380 cash.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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