Reference no: EM132465775
Cash $138,000; Accounts receivable $0; Land $ 30,000; Building $0; Supplies $0; Accounts payable $0; Notes payable $0; Quality-capital $70,000; Service revenue $98,000; Utilities, salary expense $0.
The company also presented the following transactions for the month:
June 1. Purchased supplies for $1000 on account
June 4. Purchased a building for, $62,100 cash
June 6. Performed service for a client on account, $12,000
June 10. Borrowed $7,000 cash, signing a note payable
June 13. Paid the liability from June 1
June 17. Sold for $15,000 land that had cost this same amount
June 21. Received $8000 cash from June 6th transaction
June 30. Paid utilities expense of $600 and salary expense $2,500
Requirements:
Question 1: State the effect each transaction from June 1st -30th will have on the accounting equation. For example, the transaction increased asset and increased capital; the transaction increased expenses and decreased cash; the transaction increased asset and decreased asset; etc.
Question 2: Prepare the journal entries with narrations to record the transactions for "June"
Question 3: Post the transactions recorded in your journal to their respective "T" accounts and balance off each account at June 30th, 2018.
Question 4: Having determined the account balances, represent this information using the expanded accounting equation.