Question

Problem 2-2A Julia Dumars is a licensed CPA. During the first month of operations of her business, Monty Corp., the following events and transactions occurred. May 1 Stockholders invested $20,700 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $2,700 per month. 3 Purchased $2,400 of supplies on account from Vincent Supply Company. 7 Paid office rent of $830 cash for the month. 11 Completed a tax assignment and billed client $3,800 for services performed. 12 Received $2,500 advance on a management consulting engagement. 17 Received cash of $1,800 for services performed for Orville Co. 31 Paid secretary-receptionist $2,700 salary for the month. 31 Paid 40% of balance due Vincent Supply Company. Julia Dumars uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
please answer all these

Answer 1

Credit Debit $ 20,700 No. Date Account titles and explanation 1 May 1 Cash Common Stock (To record investment of common stock) $ 20,700 2 $ May 2 No Entry No Entry (No Monetary transcation exist) $ 3 $ 2,400 May 3 Supplies Accounts Payable (To record purchase of supplies on account) $ 2,400 $ 830 4 May 7 Rent Expense Cash (To record rent expenses) $ 830 $ 3,800 5 May 11 Accounts Receivable Service Revenue (To record service rendered on account) $ 3,800

$ 2,500 6 May 12 Cash Unearned Service Revenue (To record cash receipt in advance) $ 2,500 $ 1,800 7 May 17 Cash Service Revenue (To record service rendered for cash) $ 1,800 2,700 8 May 31 Salaries and Wages Expense Cash (To record payment of Secretary salaries expense) $ 2,700 $ 960 9 May 31 Accounts Payable Cash (To record cash balance to creditors) $ 960

Cash Debit $ 20,700 Date Explanation May 1 Adjusting May 7 Adjusting May 12 Adjusting May 17 Adjusting May 31 Adjusting May 31 Adjusting $ 2,500 $ 1,800 Credit Balance $ 20,700 $ 830 $ 19,870 $ 22,370 $ 24,170 $ 2,700 $ 21,470 $ 960 $ 20,510 Accounts Receivable Date Explanation Debit Credit May 11 Adjusting $ 3,800 Balance $ 3,800 Supplies Date Explanation Debit May 3 Adjusting $ 2,400 Credit Balance $ 2,400 Accounts Payable Date Explanation Debit Credit Balance May 3 Adjusting $ 2,400 $ 2,400 May 31 Adjusting $ 960 $ 1,440

Unearned Service Revenue Date Explanation Debit Credit Balance May 12 Adjusting $ 2,500 $ 2,500 Common Stock Date Explanation Debit Credit Balance May 1 Adjusting $ 20,700 $ 20,700 Service Revenue Date Explanation Debit Credit Balance May 11 Adjusting $ 3,800 $ 3,800 May 17 Adjusting $ 1,800 $ 5,600 Salaries and Wages Expense Date Explanation Debit Credit May 31 Adjusting $ 2,700 Balance $ 2,700 Rent Expense Date Explanation Debit May 7 Adjusting $ 830 Credit Balance $ 830

MONTY CORP. Trail Balance May,31,2019 Account Particulars Debit Credit Cash $ 20,510 Accounts Receivable $ 3,800 Supplies $ 2,400 Accounts Payable $ 1,440 Unearned Service Revenue $ 2,500 Common Stock $ 20,700 Service Revenue $ 5,600 Salaries and Wages Expense $ 2,700 Rent Expense $ 830 Total $ 30,240 $ 30,240 $ $

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