Question

Professor Quark opens his own company, Electronic Tutorial Services, and completes the following transactions in June:

Answer 1

Answer:

Required 1 : Journal Entries

6/1

Cash $12,000 (debit)

Capital $12,000 (credit)

6/3

Equipment $1,800 (debit)

Accounts Payable $1,800 (credit)

6/4

Insurance Prepaid $360 (debit)

Cash $360 (credit)

6/6

Office Supplies $300 (debit)

Cash $300 (credit)

6/9

Computer $7,500 (debit)

Cash $1,500 (credit)

Account Payable $6,000 (credit)

6/10

Trade Receivable : Fiona Smith $40 (debit)

Service Revenue $40 (credit)

6/14

Accounts Payable $1,800 (debit)

Cash $1,800 (credit)

6/25

Cash $35 (debit)

Service Revenue $35 (credit)

6/30

Cash (debit)

Trade Receivable : Fiona Smith $40 (credit)

6/30

Drawings $500 (debit)

Cash $500 (credit)

Required 2

Professor Quark have $7,615 at the end of June in his Cash Account

Explanation:

For determination of cash on hand at end of June, prepare a Cash Book.

Cash Book - Cash Columns Only

Debit :

Capital                                                 $12,000

Trade Receivable : Fiona Smith               $40

Service Revenue                                       $35

Totals                                                   $12,075

Credit :

Insurance Prepaid                                  $360

Office Supplies                                       $300

Computer                                             $1,500

Accounts Payable                                $1,800

Drawings                                                $500

Balance c/d (Balancing figure)            $7,615

Totals                                                   $12,075