Question

accounting cycle help!

MARSHALL COMPANY On April 1, Ralph Marshall opened Marshall Company. The company provides services to a variety of clients. The company was organized as a corporation and has a monthly accounting period. The following transactions occurred during April. Apr. 1 Аpг. 1 Apr. 1 Marshall invested $20,000 cash in the company in exchange for its common stock The company paid $1,000 cash to rent office space for April. The company paid $1,440 cash for the premium on a 12-month insurance policy. Coverage begins on April 1 The company performed services for a client and received $2,000 cash The company purchased $700 of supplies on account The company paid $500 cash for salary earned by an employee. The company performed $1,900 in services for a client. The client must pay within 30 days. The company paid $500 cash for salary earned by an employee. The company paid $200 cash for this month's utility bill. The company paid $800 cash in dividends. Apr. 4 Apr. 7 Apr. 14 Apr. 24 Apr. 28 Apr. 30 Apr. 30 The company's chart of accounts follows: CHART OF ACCOUNTS REVENUES Service Revenue ASSETS Cash Accounts Receivable EXPENSES Supplies Prepaid Insurance Salary Expense Rent Expense Supplies Expense Utilities Expense LIABILITIES Accounts Payable Salary Payables Insurance Expense CLEARING Income Summary EQUITY Common Stock Retained Earnings DIVIDENDS Dividends Adjustment Data 1. As of April 30, the company has incurred $100 of unpaid and unrecorded salary. 2. As of April 30, $120 of insurance coverage has expired. 3. As of April 30, the company has $570 of supplies remaining.

Answer 1

Journal:

Date	Account title and explanation	Debit	Credit
Apr.1	Cash	$20,000
	Common stock		$20,000
	[Issuance of common stock]
Apr.1	Rent expense	$1,000
	Cash		$1,000
	[Paid for rent expense]
Apr.1	Prepaid insurance	$1,440
	Cash		$1,440
	[Prepaid insurance]
Apr.4	Cash	$2,000
	Service revenue		$2,000
	[Cash received for services performed]
Apr.7	Supplies	$700
	Accounts payable		$700
	[Purchased supplies on account]
Apr.14	Salary expense	$500
	Cash		$500
	[Paid for salaries expense]
Apr.24	Accounts receivable	$1,900
	Service revenue		$1,900
	[Services performed on account]
Apr.28	Salary expense	$500
	Cash		$500
	[Paid for salaries expense]
Apr.30	Utilities expense	$200
	Cash		$200
	[Paid for utilities expense]
Apr.30	Dividends	$800
	Cash		$800
	[Payment of cash dividends]
Adjustments:
Apr.30	Salary expense	$100
Adj.1	Salaries payable		$100
	[Accrued salaries]
Apr.30	Insurance expense	$120
Adj.2	Prepaid insurance		$120
	[Insurance expense]
Apr.30	Supplies expense [700-570]	$130
Adj.3	Supplies		$130
	[Supplies expense]
Closing entries:
Apr.30	Service revenue	$3,900
	Income summary		$3,900
Apr.30	Income summary	$2,550
	Salary expense		$1,100
	Rent expense		$1,000
	Supplies expense		$130
	Utilities expense		$200
	Insurance expense		$120
Apr.30	Retained earnings [3,900-2,550]	$1,350
	Income summary
Apr.30	Dividends	$800
	Retained earnings		$800

T-Accounts:

Cash					Service revenue
Apr.1	$20,000	Apr.1	1000				Apr.4	$2,000
Apr.4	$2,000	Apr.1	$1,440		Apr.30	$3,900	Apr.24	$1,900
		Apr.14	$500
		Apr.28	$500
		Apr.30	$200		Salary expense
		Apr.30	$800		Apr.14	$500
End.	$17,560				Apr.28	$500
					Adj.1	$100	Apr.30	$1,100
Accounts receivable
Apr.24	$1,900				Rent Expense
End.	$1,900				Apr.1	$1,000	Apr.30	$1,000
Supplies
Apr.7	$700	Adj.3	$130
End.	$570				Supplie expense
					Adj.3	$130	Apr.30	$130
Prepaid insurance
Apr.1	1440	Adj.2	$120
End.	$1,320				Utilites expense
					Apr.30	$200	Apr.30	$200
Accounts payable
		Apr.7	$700
		End.	$700
					Insurance Expense
Salary payble					Adj.2	$120	Apr.30	$120
		Adj.1	$100
		End.	$100
Common stock
		Apr.1	$20,000		Income summary
		End.	$20,000		Apr.30	$2,550	Apr.30	$3,900
Retained earnings					Apr.30 (R/E)	$1,350
Apr.30 (Div.)	$800	Apr.30 (I/S)	$1,350
		End.	$550
Dividends
Apr.30	$800
End.	$800

.

MARSHALL COMPANY
Income statement
For the month ended April 30
Service revenue		$3,900
Expenses:
Salary expense	$1,100
Rent expense	$1,000
Supplies expense	$130
Utilities expense	$200
Insurance expense	$120
Total expenses		$2,550
Net income		$1,350
MARSHALL COMPANY
Retained earnings statement
For the month ended April 30
Retained earnings, April 1		0
+ Net income		$1,350
- Dividens		($800)
Retained earnings, April 30		$550
MARSHALL COMPANY
Balance Sheet
April 30
Assets
Cash		$17,560
Accounts receivable		$1,900
Supplies		$570
Prepaid insurance		$1,320
Total assets		$21,350
Liabilities
Accounts payable		$700
Salary payable		$100
Total liabilities		$800
Stockholder's equity
Common stock		$20,000
Retained earnings		$550
Total stockholder's equity		$20,550
Total liabilities and stockholder's equity		$21,350

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