Transaction Analysis and Trial Balance Walsh & Company, Electrical Contractors began operations on May 1. The following transactions occurred during the month of May: May 1 Stockholders invested $50,400 in the business in exchange for common stock. 2 Purchased equipment on account, $4,600. 3 Returned $600 of equipment that was not satisfactory. The return reduced the amount owed to the supplier. 4 Purchased supplies on account, $1,260. 5 Purchased a truck for $10,900. Walsh paid $5,900 cash and gave a note payable for the balance. 6 Paid rent for May, $1,275. 7 Paid fuel cost for truck, $460. 8 Billed customers for services rendered, $14,100. 9 Paid $3,400 on account for the equipment purchased on May 2. 10 Paid utilities for May, $610. 11 Received invoice for May advertising, to be paid in June, $680. 12 Paid employees' wages, $3,750. 13 Collected $9,000 on accounts receivable. 14 Walsh paid stockholders a dividend of $1,900 cash. 15 Paid interest for May on an outstanding note payable, $120. Required a. Create journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. The following accounts will be needed to record the transactions for May: Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Rent Expense; Wages Expense; Utilities Expense; Truck Expense; Advertising Expense; and Interest Expense. b. Prepare a trial balance as of May 31.
Transaction Analysis and Trial Balance Walsh & Company, Electrical Contractors began operations on May 1. The following transactions occurred during the month of May: May 1 Stockholders invested $50,400 in the business in exchange for common stock. 2 Purchased equipment on account, $4,600. 3 Returned $600 of equipment that was not satisfactory. The return reduced the amount owed to the supplier. 4 Purchased supplies on account, $1,260. 5 Purchased a truck for $10,900. Walsh paid $5,900 cash and gave a note payable for the balance. 6 Paid rent for May, $1,275. 7 Paid fuel cost for truck, $460. 8 Billed customers for services rendered, $14,100. 9 Paid $3,400 on account for the equipment purchased on May 2. 10 Paid utilities for May, $610. 11 Received invoice for May advertising, to be paid in June, $680. 12 Paid employees' wages, $3,750. 13 Collected $9,000 on accounts receivable. 14 Walsh paid stockholders a dividend of $1,900 cash. 15 Paid interest for May on an outstanding note payable, $120. Required a. Create journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. The following accounts will be needed to record the transactions for May: Cash; Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Rent Expense; Wages Expense; Utilities Expense; Truck Expense; Advertising Expense; and Interest Expense. b. Prepare a trial balance as of May 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chapter Two - Part 2
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Transcribed Image Text:Transaction Analysis and Trial Balance
Walsh & Company, Electrical Contractors began operations on May 1. The following transactions occurred during the month of May:
May 1 Stockholders invested $50,400 in the business in exchange for common stock.
2 Purchased equipment on account, $4,600.
3 Returned $600 of equipment that was not satisfactory. The return reduced the amount owed to the supplier.
4 Purchased supplies on account, $1,260.
5 Purchased a truck for $10,900. Walsh paid $5,900 cash and gave a note payable for the balance.
6 Paid rent for May, $1,275.
7 Paid fuel cost for truck, $460.
8 Billed customers for services rendered, $14,100.
9 Paid $3,400 on account for the equipment purchased on May 2.
10 Paid utilities for May, $610.
11 Received invoice for May advertising, to be paid in June, $680.
12 Paid employees' wages, $3,750.
13 Collected $9,000 on accounts receivable.
14 Walsh paid stockholders a dividend of $1,900 cash.
15 Paid interest for May on an outstanding note payable, $120.
Required
a. Create journal entries and record the above transactions in T-accounts, and key entries with the numbers of the transactions. The following accounts will be needed to record the transactions for May: Cash;
Accounts Receivable; Supplies; Equipment; Truck; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Rent Expense; Wages Expense; Utilities Expense; Truck Expense; Advertising
Expense; and Interest Expense.
b. Prepare a trial balance as of May 31.
Journal Entries
T-Accounts
Trial Balance
General Journal
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