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)Stockholders 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

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)Stockholders 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.​

Quizplus · Accepted Answer

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)Stockholders 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