Reference no: EM132906135
Question - 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.
Requirement 1 - Prepare the Journal Entries in the General Journal.
Requirement 2 - Post Journal Entries to the General Ledger.
Requirement 3 - Trial Balance.
Requirement 4 - Prepare the Adjusting Entries Requirement 5-Post Adjusting Entries to the General Ledger.
Requirement 6 - Adjusted Trial Balance.
Requirement 7 - Prepare the Financial Statements.
Requirement 8 - Prepare the Closing Entries.
Requirement 9 - Post Closing Entries to the General Ledger.
Requirement 10 - Prepare the Post Closing Trial Balance.