Problem - In June 2010, Wallace King opened a photography studio that provides services to public and private schools. His firm's financial activities for the first month of operations and the chart of accounts appear below.
INSTRUCTIONS
1. Journalize the transactions. Number the journal page 1 and write the year at the top of the Date column. Describe each entry.
2. Post to the ledger accounts. Before you start the posting process, open the accounts by entering the names and numbers in the headings. Follow the order of the accounts in the chart of accounts.
Assets
101 Cash
111 Accounts Receivables
121 Supplies
141 Office Equipment
151 Photographic Equipment
Liabilities
202 Accounts payable
Owner's Equity
301 Wallace King, Capital
302 Wallace King, Drawing
Revenue
401 Fees Income
Expenses
511 Office cleaning expense
514 Rent expense
517 Salaries expense
520 Telephone expense
523 Utilities expense
DATE TRANSACTIONS
June 1 Wallace King invested $16,000 cash in the business.
June 2 Issued Check 1001 for $900 to pay the June rent.
June 5 Purchased desks and other office furniture for $3,750 from Brown, Inc., received Invoice 5312, payable in 60 days.
June 6 Issued Check 1002 for $950 to purchase photographic equipment.
June7 Purchased supplies for $238; paid with Check 1003.
June 10 Issued Check 1004 for $200 for office cleaning service.
June 12 Performed services for $650 in cash and $650 on credit. (Use one compound entry.)
June 15 Returned damaged supplies; received a $75 cash refund.
June 18 Purchased a computer for $1,025 from Craft Office Supply, Invoice 304;issued Check 1005 for a $500 down payment. The balance is payable in30 days. (Use one compound entry.)
June 20 Issued Check 1006 for $2,100 to Brown, Inc., as payment on account for office furniture, Invoice 5312.
June 26 Performed services for $1,000 on credit.
June27 Paid $290 for monthly telephone bill; issued Check 1007. 30 Received $1,050 in cash from credit clients on account.
June 30 Received $1050 in cash from credit clients on account.
June 30 Issued Check 1008 to pay the monthly utility bill of $275.
June 30 Issued Checks 1009-1011 for $2,800 for salaries.
Analyze: What was the Cash account balance after the transaction of June 27 was recorded?