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If an amount box does not require an entry, leave it blank.a.  In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:Shareholders invested $12,500 cash in the business by purchasing common stock.Purchased supplies on account, $6,250.Paid operating expenses, $5,500.Billed clients for fees, $7,440.Received cash from cash clients, $4,700.Paid creditors on account, $1,400.Received $3,100 from clients on account.Paid $1,500 cash dividends.Cash            Bal.   Accounts Receivable    Bal.   Supplies    Accounts Payable      Bal. Common Stock    Dividends    Professional Fees          Bal. Operating Expenses    b.  Prepare a trial balance as of June 30 for Potter Pool Services.Potter Pool ServicesTrial BalanceJune 30                           c.  Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June, determine the following:(1) Net income for the month.$(2) Stockholders' equity as of June 30.$

Question
If an amount box does not require an entry, leave it blank.

a.  In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:

  1. Shareholders invested $12,500 cash in the business by purchasing common stock.
  2. Purchased supplies on account, $6,250.
  3. Paid operating expenses, $5,500.
  4. Billed clients for fees, $7,440.
  5. Received cash from cash clients, $4,700.
  6. Paid creditors on account, $1,400.
  7. Received $3,100 from clients on account.
  8. Paid $1,500 cash dividends.
Cash
       
       
       
Bal.      

Accounts Receivable
       
Bal.      

Supplies
       

Accounts Payable
       
    Bal.  

Common Stock
       

Dividends
       

Professional Fees
       
       
    Bal.  

Operating Expenses
       

b.  Prepare a trial balance as of June 30 for Potter Pool Services.

Potter Pool Services
Trial Balance
June 30
     
     
     
     
     
     
     
     
     

c.  Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June, determine the following:

(1) Net income for the month. $
(2) Stockholders' equity as of June 30. $
check_circleAnswer
Step 1

a. Prepare T-accounts for Potter pool services for the transactions as shown below:

Cash
Accounts receivable
Particulars
Common stock
Professional fees
Accounts receivable
Particulars
Amount
Amount
Particulars
Amount
Particulars
Amount
$12,500 Operating expense
$4,700 Accounts payable
$3,100 Dividends
Balance
$20,300
$7,440 Cash
Balance
$7,440
Professional fees
$5,500
$1,400
$1,500
$11,900
$20,300
$3,100
$4,340
$7,440
Supplies
Accounts payable
Particulars
Particulars
Particulars
Particulars
Amount
Amount
Amount
Amount
$1,400 Supplies
Accounts payable
$6,250
Cash
Balance
$6,250
$4,850
$6,250
$6,250
$6,250
Common stock
Dividends
Particulars
Particulars
Amount
Particulars
Particulars
Amount
Amount
Amount
$12,500
$12,500
$1,500
Cash
Cash
$1,500
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Cash Accounts receivable Particulars Common stock Professional fees Accounts receivable Particulars Amount Amount Particulars Amount Particulars Amount $12,500 Operating expense $4,700 Accounts payable $3,100 Dividends Balance $20,300 $7,440 Cash Balance $7,440 Professional fees $5,500 $1,400 $1,500 $11,900 $20,300 $3,100 $4,340 $7,440 Supplies Accounts payable Particulars Particulars Particulars Particulars Amount Amount Amount Amount $1,400 Supplies Accounts payable $6,250 Cash Balance $6,250 $4,850 $6,250 $6,250 $6,250 Common stock Dividends Particulars Particulars Amount Particulars Particulars Amount Amount Amount $12,500 $12,500 $1,500 Cash Cash $1,500

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Step 2

Continuation of T accounts.

Operating expenses
Professional fees
Particulars
Particulars
Particulars
Particulars
Amount
Amount
Amount
Amount
$7,440
$4,700
$12,140
Accounts receivabl
Cash
Cash
$5,500
S5,500
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Operating expenses Professional fees Particulars Particulars Particulars Particulars Amount Amount Amount Amount $7,440 $4,700 $12,140 Accounts receivabl Cash Cash $5,500 S5,500

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Step 3

b. Prepare trail balance as of June 30 for potter p...

Trail balance
Jun-30
Debit (S) Credit (S)
$11,900
$4,340
Particulars
Cash
|Accounts receivable
Supplies
Accounts payable
Common stock
Dividends
Professional fees
Operating expenses
Total
$6,250
S4,850
S12,500
$1,500
$12,140
S5,500
S29,490 S29,490|
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Trail balance Jun-30 Debit (S) Credit (S) $11,900 $4,340 Particulars Cash |Accounts receivable Supplies Accounts payable Common stock Dividends Professional fees Operating expenses Total $6,250 S4,850 S12,500 $1,500 $12,140 S5,500 S29,490 S29,490|

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