80.2K

Verified Solution

Link Copied!

TRANSACTIONS Drum, Inc. is a computer software consulting frm. The company also sells popular buasiness omputer software to is clients. During the month of May, the following transactions occured. May 1Paid in advance to Sug Realty $1,600 for 4 months rent. May 1 Borrowed $10,000 from Bank of America. The note has an interest rate May i Rendered S8,00 in co sulting services for Harper, Inc Received a 12% note with a term of May 2 Of 12% and a 10 month term. 30 days Purchased on credit $500 in office supplies from Apex Corp Purchased office equipment from Hunter, Inc. for $2.000. The company paid $500 down and will pay the balance in the future. May 4 Performed $5 500 in consulting services for Atkins Enterprise, receiving $1 500 and billed the company for the balance Paid Tre Twiggs, your employee, $800 for one week of services Issued 2,000 shares of $3 par common stock for $9 per share. Received $1 200 in advance from during the month of June. Received S1 ,000 from Atkins Enterprise as payment o May 3 May 3 May 7 Drum, Inc. for consulting services to be rendered May 8 its account. May 9Paid the balance due to Hunter, Inc May 10 Paid Tallahassee Democrat $200 for an ad that a May 10Declared cash dividends of $3,000 May 10 Sold office equipment that cost s$8,000 (accumulated depreciation $$,000) appeared in the local newspaper The company received $1,000 from the sale of the equipment Purchased from Johnson software packages (inventory) for $15,000 cash. May 11 May 12 Some of the merchandise purchased from Johnson was damaged & $1 500 of its money was refunded May 13 Wrote off $4 000 in customer accounts. The company uses the allowance method. May 13 Purchased computer software from Drum for $20,000, terms 3/10, net/30. May 18 Paid the balance due to Drum within 10 days May 19 Sold software to Lowe for $4,000, terms 2/10, net 30. Cost of software, $2,000. May 20 Lowe returned $1 ,000 of software costing $500. May 21 Lowe paid its account balance within the discount period. May 21 Reinstated a customer 's $3,000 account balance that had been written off as uncollectible. The customer paid the $3,000 amount. Paid freight charges to ship the goods sold to Lowe, $300. May 22 May 22 May 23 May 24 May 31 Paid the cash dividend declared on May 10 Sold computer software for $50 000 cash. Cost of merchandise, $22,000 Granted $1,000 in sales allowance for damaged goods, refunding the customer its Collected the May I note received from Harper, Inc, including interest. A. PREPAR E THE JOURNAL ENTRIES TO RECORD THE EVENTS DESCRIBED FOR THE MONTH OF MAY UNDER THE "PROBLEM" TAB. B. POST THE TRANSACTIONS TO THE LEDGER C. PREPARE A TRIAL BALANCE AS OF MAY 31, 2013 D. PREPARE THE JOURNAL ENTRIES TO ADJUST THE ACCOUNTS. E. POST ADJUSTING ENTRIES TO THE LEDGER F. PREPARE AN ADJUSTED TRIAL BALANCE. G. PREPARE THE FINANCIAL STATEMENT. H. CLOSE THE APPROPRIATE ACCOUNTS ON THE TRIAL BALANCE

Answer & Explanation Solved by verified expert

See Answer