Reference no: EM132635808

Question - Set up the following ledger accounts for Magic Cleaning Co. Include the account the balances. Use the 07/01/2020 date:

Cash-$5,000; Accounts Receivable-$1,500; Supplies-$300; Washing Equipment-$10,000; Accounts Payable-$500; Yiru's Capital-$16,300.

1. A trial balance 07/01/2020

2. Journalize and post to the ledger account the following business transactions for the third quarter.

3. After you have journalized and posted the transactions, find in the ledger accounts, and a trial balance dated 09/30/2020.

Business Transactions:

1. Paid quarterly rent of $3,000 to Eden Property Co. in cash.

2. Received a check for $500 from RLI Co. in part payment of their obligation to us (Credit. Accounts Receivable)

3. Received $9,000 for cleaning revenue.

4. Paid salaries amounting to $2,500.

5. Sent a check for $300 in payment of our obligation to Good Supply Co. due today. (Debit. Accounts Payable)

6. Yiru took $1,000 out of the business for personal use.

7. Paid monthly water bill amounting to $100

8. Sent the Clean Goods a check for $180 for laundry expenses.

9. Purchased a new machine for $800 and agreed to pay Clean Goods Co. in thirty days. (Credit. Accounts Payable)

10. Bought some supplies consisting of soap powder and liquid, paying $120 cash.