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

question 227

Essay

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital; Clay Potter, Drawing; 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)Potter invested $12,500 cash in the business.
(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)Withdrew $1,500 cash for personal use.
(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)Owner's equity as of June 30.

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Definitions:

Solidary Incentives

Motivations based on the pleasure, status, or companionship derived from belonging to a group or organization.

Economic Opportunities

The prospects within an economy for individuals to find employment, start businesses, and achieve financial success and advancement.

Ethical Beliefs

The set of moral principles or values that guide an individual's or society's behavior and choices.

Unionization

The process of organizing workers into unions to collectively bargain for better wages, benefits, and working conditions.