During the first month of operations, Johnson Services, Inc., completed the following transactions: i (Click the icon to

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During The First Month Of Operations Johnson Services Inc Completed The Following Transactions I Click The Icon To 1 (113.06 KiB) Viewed 9 times

During the first month of operations, Johnson Services, Inc., completed the following transactions: i (Click the icon to view the transaction data.) Read the requirements. Requirement 1. Record each transaction in the journal. Key each transaction by date. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) May 2: Johnson Services received $61,000 cash and issued common stock to the stockholders. Journal Entry Date May Date May Accounts May 3: Purchased supplies, $500, and equipment, $11,300, on account. (Prepare a single compound journal entry Journal Entry Date May Accounts Date May May 4: Performed services for a customer and received cash, $5,600. Journal Entry Accounts May 7: Paid cash to acquire land, $32,000. Debit Journal Entry Accounts Debit Debit Credit Debit Credit Credit Credit More info May 2 May 3 May 4 May 7 May 11 Johnson Services received $61,000 cash and issued common stock to the stockholders. Purchased supplies, $500, and equipment, $11,300, on account. Performed services for a customer and received cash, $5,600. Paid cash to acquire land, $32,000. Performed services for a customer and billed the customer, $3,900. Johnson expects to collect within one month. May 16 May 17 May 18 May 22 Received and paid the water and electricity bills, $370. Paid for the equipment purchased May 3 on account. Paid for newspaper advertising, $540. Received partial payment from customer on account, $1,800. May 29 Received $2,700 cash for servicing the heating unit of a customer. May 31 Paid employee salaries, $1,700. May 31 Declared and paid dividends of $1,600. Print Done X
May 11: Performed services for a customer and billed the customer, $3,900. Johnson expects to collect within one month. Journal Entry Date May May 16: Paid for the equipment purchased May 3 on account. Journal Entry Date May Date May Accounts May 17: Paid for newspaper advertising, $540. Date Accounts May Journal Entry Accounts Debit May 18: Received partial payment from customer on account, $1,800. Journal Entry Accounts Debit Debit Debit Credit Credit Credit Credit
May 22: Received and paid the water and electricity bills, $370. Journal Entry Date May Date May May 29: Received $2,700 cash for servicing the heating unit of a customer. Journal Entry Accounts Accounts May 31 (a): Paid employee salaries, $1,700. Date May Date May Journal Entry Accounts May 31 (b): Declared and paid dividends of $1,600. Journal Entry Debit Accounts Debit Debit Debit Credit Credit Credit Credit
Requirement 2. Post the transactions to the T-accounts, using transaction dates as posting references. Determine the ending balance in each account. Review the journal entries prepared in previous steps. Cash Accounts Receivable Supplies Equipment Land Common Stock Dividends Service Revenue Salary Expense Advertising Expense
Accounts Payable Requirement 3. Prepare the trial balance of Johnson Services, Inc., at May 31 of the current year. Select the accounts that will appear in the trial balance. Then enter the account balances and total the debits and credits. Review the account balances prepared in a previous step. The company Johnson Services, Inc. Trial Balance May 31 Account Debit Utilities Expense Credit Total Requirement 4. James Johnson, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether May was profitable (and by how much). Total resources = Amount owed profitable, as it reported