Carlos Beltran started an engineering firm called Beltran Engineering. He began operations and completed seven transactions in May, which included his initial investment of $17,000 cash. After those seven transactions, the ledger included the following accounts with normal balances.
|
Cash |
$26,660 |
|
Office supplies |
660 |
|
Prepaid insurance |
3,200 |
|
Office equipment |
16,500 |
|
Accounts payable |
16,500 |
|
C. Beltran, Capital |
17,000 |
|
C. Beltran,Withdrawals |
3,740 |
|
Engineering fees earned |
24,000 |
|
Rent expense |
6,740 |
Required
1. Prepare a trial balance for this business as of the end of May.
2. Analyze the accounts and their balances and prepare a list that describes each of the seven most likely transactions and their amounts.
3. Prepare a report of cash received and cash paid showing how the seven transactions in part 2 yield the $26,660 ending Cash balance.