Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May:Jay Bradford invested $40,000 cash in the company, as its sole owner.Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.Purchased basic office supplies for $2420 cash.Purchased more office supplies for $1,500 on account.Total revenues earned were $20,000—$8,000 cash and $12,000 on account.Paid $400 to suppliers for accounts payable due.Received $3,000 from customers in payment of accounts receivable.Received utility bills in the amount of $380, to be paid next month.Paid the monthly salaries of the two employees, totaling $6,100Instructions:(a) Journalize and post the May transactions.(b) Prepare a trial balance at May 31.(c) Enter the following adjustments.(1) Unbilled and uncollected revenue for services performed at May 31 were $2,700.(2) Depreciation on equipment for the month was $500.(3) One-twelfth of the insurance expired.(4) An inventory count shows $600 of cleaning supplies on hand at May 31.(5) Accrued but unpaid employee salaries were $1,000.(d) Prepare adjusted trial balance(e) Prepare the income statement and owner’s equity statement for May and a balance sheet at May 31.

Name: Maquoketa Services was formed on May 1, 2019. The following transactio
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Description: Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May:Jay Bradford invested $40,000 cash in the company, as its sole owner.Hired two employees to work in the warehouse. They wi

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Answered: Maquoketa Services was formed on May 1,…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.15MCE: Journal Entries Following is a list of transactions entered into during the first month of...

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Maquoketa Services was formed on May 1, 2019. The following transactions took place during the first month. Transactions on May:

Jay Bradford invested $40,000 cash in the company, as its sole owner.
Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Purchased basic office supplies for $2420 cash.
Purchased more office supplies for $1,500 on account.
Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
Paid $400 to suppliers for accounts payable due.
Received $3,000 from customers in payment of accounts receivable.
Received utility bills in the amount of $380, to be paid next month.
Paid the monthly salaries of the two employees, totaling $6,100Instructions:

(a) Journalize and post the May transactions.

(b) Prepare a trial balance at May 31.

(1) Unbilled and uncollected revenue for services performed at May 31 were $2,700.

(2) Depreciation on equipment for the month was $500.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $600 of cleaning supplies on hand at May 31.

(5) Accrued but unpaid employee salaries were $1,000.

(d) Prepare adjusted trial balance

(e) Prepare the income statement and owner’s equity statement for May and a balance sheet at May 31.

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