Set Up T Accounts for Cash; Accounts Receivable; Supplies; Accounts

question 202

Essay

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees; and Operating Expenses.
a) In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:
1) Shareholders invested $12,500 cash in the business by purchasing common stock.
2) Purchased supplies on account, $6,250.
3) Paid operating expenses, $5,500.
4) Billed clients for fees, $7,440.
5) Received cash from cash clients, $4,700.
6) Paid creditors on account, $1,400.
7) Received $3,100 from clients on account.
8) Paid $1,500 cash dividends.
b) Prepare a trial balance as of June 30 for Potter Pool Services.
c) Assuming that supplies expense which has not been recorded) amounts to $1,500 for June, determine the following:
1) Net income for the month.
2) Stockholders' equity as of June 30.

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Definitions:

Temporary Center

A transient focal point or hub characterized by a particular activity or function, which is not permanent.

Blood Cells

Components of blood, including red cells carrying oxygen, white cells defending against infection, and platelets aiding in clotting.

Yolk Sac

One of the extraembryonic membranes; a pouchlike outgrowth of the digestive tract of embryos of certain vertebrates (e.g., birds) that grows around the yolk and digests it. Embryonic blood cells are formed in the mammalian yolk sac, which lacks yolk.

Nuclear Equivalence

The principle suggesting that all somatic cells of an organism have the same genetic material and therefore, in theory, have the potential to develop into any type of cell or even a whole organism.