Slowhand Services was formed on May 1, 2008. The following transactions took place during the first month.
Transactions on May 1:
1. Eric Clapton invested $50,000 cash in the company, as its sole owner.
2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,800 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $500 cash.
7. Purchased more office supplies for $1,500 on account.
8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
9. Paid $400 to suppliers for accounts payable due.
10. Received $3,000 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $200, to be paid next month.
12. Paid the monthly salaries of the two employees, totalling $5,600.
(a) Prepare journal entries to record each of the events listed
(b) Post the journal entries to T accounts.
(c) Prepare a trial balance as of May 31, 2008.
Please do all of them I cant emial you
dat sounds lik your homework or assignment….do it urself man……anyways ….im doin a few journal entries.
you can use whatever you want….ive used both….payable and creditors
accounts payable/ creditors
accounts receivable/debtors
1. Dr cash 50000
Cr capital-eric Clapton 50000
2. no journal entry….the person is only hiring the workers…he is not paying any wages.
3. Dr rental agreement 48000
CR cash 24000
CR crediors 24000
4. Dr furniture & equip. 30000
CR cash 10000
CR creditors 20000
5. Dr insurance on furniture and equip. 1800
CR cash 1800
6. Dr office supplies 500
CR cash 500
7. Dr office supplies 1500
Cr accounts payable 1500
8. Dr services rendered (its a service business…therefore no sales) 20000
CR cash 8000
CR accounts receivable 12000
9. Dr accounts payable 400
CR cash 400
10. Dr Cash 3000
Cr accounts receivable 3000
11. Dr utility bills expense 200
Cr utility bills payable 200
12. Drwages and salaries expense 5600
Cr cash 5600
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if u want nore answers….send me an email.
