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, Owners Equity
57,400
320
Lee Adkins, Drawing
30,000
410
Revenue
39,000
510
Advertising Expense
2,3005
20
Salaries Expense
2,1005
40
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 $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. (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)