ACC 205 Week 1 Exercise 6 Entry and trial balance preparation

Entry and trial balance preparation.

Lee Adkins is a portrait artist. The following schedule represents Lee’s combined chart of accounts and

trial balance as of May 31.

Account number Account name Debit Credit

110 Cash $ 2,700

120 Accounts Receivable 12,100

130 Equipment and Supplies 2,800

140 Studio 45,000

210 Accounts Payable $2,600

310 Lee Adkins, Capital 57,400

320 Lee Adkins, Drawing 30,000

410 Professional Fee Revenue 39,000

510 Advertising Expense 2,300

520 Salaries Expense 2,100

540 Utilities Expense 2,000

$99,000 $99,000

The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June:

6/2: Collected $3,000 on account from customers.

6/7: Sold 25% of the equipment and supplies to a young artist for $700 for cash

6/10: Received a $300 invoice from the accountant for preparing last quarter’s financial

statements.

6/15: Paid $1,900 to creditors on account.

6/27: Adkins withdrew $2,000 cash for personal use.

6/30: Billed a customer $3,000 for a portrait painted this month.

a. Record the necessary journal entries for June on page 2 of the company’s general journal. (See Exhibit

2.6)

b. Open running balance ledger “T” accounts by entering account titles, account numbers, and May 31

balances. (See exhibit 2.3 and 2.4)

c. Post the journal entries to the “T” accounts.

d. Prepare a trial balance as of June 30. (See exhibit 2.9)