Reference no: EM132755919

During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions.

July 1 Began business by making a deposit in a company bank account of $60,000, in exchange for 6,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $3,500

July 5 Paid the premium on a 1-year insurance policy, $4,200

July 7 Purchased supplies on account from Little Company, $1,000.

July 10 Paid employee salaries, $3,500

July 14 Purchased equipment from Lake Company, $10,000.

Paid $2,500 down and the balance was placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1. Note: Use accounts payable for the balance due.

July 15 Received cash for preparing tax returns for the first half of July, $8,000

July 19 Made payment on account to Lake Company, $500. July 31 Received cash for preparing tax returns for the last half of July, $9,000

July 31 Declared and paid cash dividends of $600.

Problem 1:  Post the July journal entries to the following T-accounts and compute ending balances. Cash (111) Tax Preparation Revenue Prepaid Insurance (117) Rent Expense (511) Supplies (119) Salaries Expense (512) Equipment (144) Insurance Expense (513) Accumulated Depreciation-Equipment (145) Supplies Expense (514)