Prepare a statenmn Prepare a balance sheet as of June 30 20

Prepare a statenmn Prepare a balance sheet as of June 30, 20--, OBLEM 2-4A On May 1, B. Bangle opened Self-Wash Laundry. His accountant e following chart of accounts: listed the Cash Supplies B. Bangle, Drawing Laundry Revenue Wages Expense Rent Expense Utilities Expense Miscellaneous Expense aid Insurance Equipment Furniture and Fixture Accounts Payable B. Bangle, Capital following transactions were completed during May: Bangle deposited $35,000 in a bank account in the name of the business Bought chairs and tables, paying cash, $1,870, Ck. No. 1000. b. ought supplies on account from Barnes Supply Company, $225. Paid the rent for the current month, $875, Ck. No. 1001. Bought washing machines and dryers from Lara Equipment Company, S12,500, paying Sold services for cash for the first half of the month, $1,925. Bought insurance for one year, $1,560, Ck. No. 1003. C. $3,600 in cash and placing the balance on account, Ck. No. 1002. Paid on account to Lara Equipment Company, $1,800, Ck. No. 1004. Received and paid electric bill, $285, Ck. No. 1005. Sold services for cash for the second half of the month, $1,835. k Paid wages to an employee, $940, Ck. No. 1006. L. Bangle withdrew cash for his personal use, $800, Ck. No. 1007 m. Paid on account to Barnes Supply Company, $225, Ck. No. 1008. n. Received and paid bill from the county for sidewalk repair assessment, $280, Ck. No. 1009. (Co

Solution

Journal entries:

Sl. no

Account title

Debit

Credit

a

Bank

35,000

B. Bangle, capital

35,000

b

Furniture and fixtures

1,870

Bank

1,870

c

Purchases

225

Accounts payable

225

d

Rent

875

Bank

875

e

Equipment

12,500

Bank

3,600

Accounts payable

8,900

f

Cash

1,925

sales

1,925

g

Prepaid insurance

1,560

bank

1,560

h

Accounts payable

1,800

bank

1,800

i

Electricity charges

285

Bank

285

j

Cash

1,835

sales

1,835

k

Wages

940

Bank

940

l

B. Bangle, drawings

800

Bank

800

m

Accounts payable

225

bank

225

n

Miscellaneous expenses

280

Bank

280

T-Accounts:

Bank

a

35,000

1,870

b

875

d

3,600

e

1,560

g

1,800

h

285

i

225

m

280

n

940

k

800

l

12,235

Balance

22,765

B. Bangle, capital

35,000

a

Furniture and fixtures

B

1,870

Purchases

C

225

Accounts payable

H

1,800

225

c

M

225

8,900

e

7,100

Balance

Rent

D

875

Equipment

E

12,500

Cash

F

1,925

J

1,835

Balance

3,760

Sales

1,925

f

1,835

j

3,760

Balance

Prepaid insurance

G

1,560

B. Bangle, drawings

I

800

Miscellaneous expenses

N

280

Trial balance:

Particulars

Debit

Credit

Bank

22,765

B. Bangle, capital

35,000

Furniture and fixtures

1,870

Purchases

225

Accounts payable

7100

Rent

875

Equipment

12,500

Cash

3,760

Sales

3,760

Prepaid insurance

1,560

B. Bangle, drawings

800

Miscellaneous expenses

280

Wages

940

Electricity charges

285

45,860

45,860

Income statement:

Particulars

Debit

Particulars

Credit

Purchases

225

Sales

3,760

Rent

875

Miscellaneous expenses

280

Wages

940

Electricity charges

285

Net income

1,155

3,760

3,760

Statement of owner\'s equity:

Particulars

Amount

Opening balance

                  0

Add: Bought capital by B. Bangle

         35,000

Add: net income

           1,155

Less: Drawings

            (800)

Closing equity balance

         35,355

Balance sheet:

Liabilities

Amount

Assets

Amount

Owner\'s equity

35,355

Furniture and fixtures

1,870

Accounts payable

7,100

Equipment

12,500

Prepaid insurance

1,560

Bank

22,765

Cash

3,760

42,455

42,455

Sl. no	Account title	Debit	Credit
a	Bank	35,000
	B. Bangle, capital		35,000
b	Furniture and fixtures	1,870
	Bank		1,870
c	Purchases	225
	Accounts payable		225
d	Rent	875
	Bank		875
e	Equipment	12,500
	Bank		3,600
	Accounts payable		8,900
f	Cash	1,925
	sales		1,925
g	Prepaid insurance	1,560
	bank		1,560
h	Accounts payable	1,800
	bank		1,800
i	Electricity charges	285
	Bank		285
j	Cash	1,835
	sales		1,835
k	Wages	940
	Bank		940
l	B. Bangle, drawings	800
	Bank		800
m	Accounts payable	225
	bank		225
n	Miscellaneous expenses	280
	Bank		280