Yi Min started an engineering firm called Min Engineering. He began operations and completed seventransactions in May, which included his initial investment of $18,000 cash. After those seven transactions,the ledger included the following accounts with normal balances. Cash . . . . . . . . . . . . . . . . . . $37,600Office supplies. . . . . . . . . . 890Prepaid insurance. . . . . . . 4,600Office equipment. . . . . . . $12,900Accounts payable. . . . . . . 12,900Y. Min, Capital. . . . . . . . . . 18,000Y. Min, Withdrawals . . . . . . . . . . . $ 3,370Engineering fees earned. . . . . . . 36,000Rent expense. . . . . . . . . . . . . . . . 7,540 Required 1. Prepare a trial balance for this business as of the end of May. 2. The following seven transactions produced the account balances shown above. a. Y. Min invested $18,000 cash in the business. b. Paid $7,540 cash for monthly rent expense for May. c. Paid $4,600 cash in advance for the annual insurance premium beginning the next period. d. Purchased office supplies for $890 cash. e. Purchased $12,900 of office equipment on credit (with accounts payable). f. Received $36,000 cash for engineering services provided in May. g. Y. Min withdrew $3,370 cash for personal use. Prepare a Cash T-account, enter the cash effects (if any) of each transaction, and compute the ending Cash balance. Code each entry in the T-account with one of the transaction codes a through g.
Yi Min started an engineering firm called Min Engineering. He began operations and completed seven
transactions in May, which included his initial investment of $18,000 cash. After those seven transactions,
the ledger included the following accounts with normal balances. Cash . . . . . . . . . . . . . . . . . . $37,600
Office supplies. . . . . . . . . . 890
Prepaid insurance. . . . . . . 4,600
Office equipment. . . . . . . $12,900
Accounts payable. . . . . . . 12,900
Y. Min, Capital. . . . . . . . . . 18,000
Y. Min, Withdrawals . . . . . . . . . . . $ 3,370
Engineering fees earned. . . . . . . 36,000
Rent expense. . . . . . . . . . . . . . . . 7,540 Required
1. Prepare a
2. The following seven transactions produced the account balances shown above.
a. Y. Min invested $18,000 cash in the business.
b. Paid $7,540 cash for monthly rent expense for May.
c. Paid $4,600 cash in advance for the annual insurance premium beginning the next period. d. Purchased office supplies for $890 cash.
e. Purchased $12,900 of office equipment on credit (with accounts payable).
f. Received $36,000 cash for engineering services provided in May.
g. Y. Min withdrew $3,370 cash for personal use.
Prepare a Cash T-account, enter the cash effects (if any) of each transaction, and compute the ending
Cash balance. Code each entry in the T-account with one of the transaction codes a through g.
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