Michael Gould started a Web consulting firm called Gould Solutions. He began operations and completed seven transactions in April that resulted in the following accounts, which all have normal balances.
|
Cash |
$12,485 |
|
Office supplies |
560 |
|
Prepaid rent |
1,500 |
|
Office equipment |
11,450 |
|
Accounts payable |
11,450 |
|
M. Gould, Capital |
10,000 |
|
M. Gould,Withdrawals |
6,200 |
|
Consulting fees earned |
16,400 |
|
Operating expenses |
5,655 |
Required
1. Prepare a trial balance for this business as of the end of April.
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 $12,485 ending Cash balance.