problem 3.7a (static) short comprehensive problem (lo3 - 3 through lo3 - 9)\nsanlucas, incorporated…

problem 3.7a (static) short comprehensive problem (lo3 - 3 through lo3 - 9)\nsanlucas, incorporated, provides home inspection services to its clients. the following is the companys trial balance dated june 1, current year:\nsanlucas, incorporated\ntrial balance\njune 1, current year\ndebit credit\ncash $6,120\naccounts receivable 3,120\ninspection supplies 960\naccounts payable $1,020\nnotes payable 2,400\ndividends 720\ncapital stock 3,600\nretained earnings 2,160\ninspection revenue 18,820\nsalaries expense 5,880\nadvertising expense 360\ntesting expense 2,840\n$19,200 $19,200\nsanlucas engaged in the following transactions in june:\njune 4 borrowed cash from community bank by issuing a $1,800 note payable.\njune 9 collected a $1,920 account receivable from nina lesher.\njune 10 purchased $180 of inspection supplies on account.\njune 17 billed homeowners $1,980 for inspection services. the entire amount is due on july 17.\njune 25 paid wlir radio $240 for ads to be aired on june 27.\njune 28 recorded and paid $1,560 for testing expenses incurred in june.\njune 30 recorded and paid june salaries of $1,320.\nrequired:\na. record the companys june transactions in general journal form.\nb. post each entry to the appropriate ledger accounts.\nc. prepare a trial balance dated june 30, current year.

problem 3.7a (static) short comprehensive problem (lo3 - 3 through lo3 - 9)\nsanlucas, incorporated, provides home inspection services to its clients. the following is the companys trial balance dated june 1, current year:\nsanlucas, incorporated\ntrial balance\njune 1, current year\ndebit credit\ncash $6,120\naccounts receivable 3,120\ninspection supplies 960\naccounts payable $1,020\nnotes payable 2,400\ndividends 720\ncapital stock 3,600\nretained earnings 2,160\ninspection revenue 18,820\nsalaries expense 5,880\nadvertising expense 360\ntesting expense 2,840\n$19,200 $19,200\nsanlucas engaged in the following transactions in june:\njune 4 borrowed cash from community bank by issuing a $1,800 note payable.\njune 9 collected a $1,920 account receivable from nina lesher.\njune 10 purchased $180 of inspection supplies on account.\njune 17 billed homeowners $1,980 for inspection services. the entire amount is due on july 17.\njune 25 paid wlir radio $240 for ads to be aired on june 27.\njune 28 recorded and paid $1,560 for testing expenses incurred in june.\njune 30 recorded and paid june salaries of $1,320.\nrequired:\na. record the companys june transactions in general journal form.\nb. post each entry to the appropriate ledger accounts.\nc. prepare a trial balance dated june 30, current year.

Answer

Explanation:

Step1: Record transactions in general journal

June 4: Debit: Cash $1,800 Credit: Notes Payable $1,800 June 9: Debit: Cash $1,920 Credit: Accounts Receivable $1,920 June 10: Debit: Inspection Supplies $180 Credit: Accounts Payable $180 June 17: Debit: Accounts Receivable $1,980 Credit: Inspection Revenue $1,980 June 25: Debit: Pre - paid Advertising $240 Credit: Cash $240 June 28: Debit: Testing Expense $1,560 Credit: Cash $1,560 June 30: Debit: Salaries Expense $1,320 Credit: Cash $1,320

Step2: Post entries to ledger accounts

Update each account balance in the ledger based on the journal entries. For example, for the Cash account, start with the beginning balance of $6,120, add the cash received amounts and subtract the cash paid amounts.

Step3: Prepare trial balance

List all accounts with their debit or credit balances as of June 30. Calculate the total of debit balances and the total of credit balances. They should be equal.

Answer:

a. See above journal entries. b. Ledger accounts are updated based on journal entries. c. Trial balance is prepared with equal debit and credit totals after listing all account balances.