entry and trial balance preparation

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Entry and trial balance preparation. Lee Adkins is a portrait artist. The following schedule represents Lee’s combined chart of accounts and trial balance as of May 31.

Account number Account name Debit Credit

110	Cash		$ 2,700
120	Accounts Receivable		12,100
130	Equipment and Supplies		2,800
140	Studio		45,000
210	Accounts Payable			$2,600
310	Lee Adkins, Owners Equity			57,400
320	Lee Adkins, Drawing		30,000
410	Revenue			39,000
510	Advertising Expense		2,300
520	Salaries Expense		2,100
540	Utilities Expense		2,000
		$99,000		$99,000

The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June:

6/2:	Collected $7,500 on account from customers.
6/7:	Sold 25% of the equipment and supplies to a young artist for $700 for cash
6/10:	Received a $500 bill from the accountant for preparing last quarter’s financial statements.
6/15:	Paid $2,100 to creditors on account.
6/27:	Adkins withdrew $1,000 cash for personal use.
6/30:	Billed a customer $3,000 for a portrait painted this month. Open running balance ledger “T” accounts by entering account titles, account numbers, and May 31 balances.

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entry and trial balance preparation

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entry and trial balance preparation