Wickers Restoration Services had the following transactions on May. 1. Received $48,000 from sale of common stock. 2. Paid rent on office for the month, $880. 3. Purchased supplies on account, $1,750. 4. Earned fees, receiving cash, $12,600. 5. Paid creditor on account, $1,000. 6. Paid automobile expenses for month, $375, and miscellaneous expenses, $250. 7. Paid office salaries for the month, $3,900. 8. Earned fees which the customer will pay next month, $2,400. 9. Determined that the cost of supplies used was $280. 10. Paid dividends, $2,400. b. Prepare T accounts for each account used and post the journal entries to these accounts, placing the appropriate number to the left of each amount to identify the transactions. For grading purposes enter transactions in sequential order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank. CHART OF ACCOUNTSWickers Restoration ServicesGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Office Equipment LIABILITIES 21 Accounts Payable 22 Unearned Revenue 23 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Rent Expense 52 Wages Expense 53 Automobile Expense 54 Supplies Expense 55 Miscellaneous Expense

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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Question

Wickers Restoration Services had the following transactions on May.

1.	Received $48,000 from sale of common stock.
2.	Paid rent on office for the month, $880.
3.	Purchased supplies on account, $1,750.
4.	Earned fees, receiving cash, $12,600.
5.	Paid creditor on account, $1,000.
6.	Paid automobile expenses for month, $375, and miscellaneous expenses, $250.
7.	Paid office salaries for the month, $3,900.
8.	Earned fees which the customer will pay next month, $2,400.
9.	Determined that the cost of supplies used was $280.
10.	Paid dividends, $2,400.

Prepare T accounts for each account used and post the journal entries to these accounts, placing the appropriate number to the left of each amount to identify the transactions. For grading purposes enter transactions in sequential order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.

CHART OF ACCOUNTSWickers Restoration ServicesGeneral Ledger