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.

Question

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The Answer of 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.

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