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, Owners Equity |
57,400 |
|
|
320 |
Lee Adkins, Drawing |
30,000 |
|
|
410 |
Revenue |
39,000 |
|
|
510 |
Advertising Expense |
2,300 |
|
|
520 |
Salaries Expense |
2,100 |
|
|
540 |
Utilities Expense |
2,000 |
$99,000 |
The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June:
6/2: Collected $7,500 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 $500 bill from the accountant for preparing last quarter’s financial statements.
6/15: Paid $2,100 to creditors on account.
6/27: Adkins withdrew $1,000 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.
b. Open running balance ledger “T” accounts by entering account titles, account num¬bers, and May 31 balances.
c. Post the journal entries to the “T” accounts.
d. Prepare a trial balance as of June 30.