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Lee Adkins 2700

Price: $2.50


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

Account # 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

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.
a. Record the necessary journal entries for June on page 2 of the company’s general journal. (See Exhibit 2.6)
b. Open running balance ledger “T” accounts by entering account titles, account numbers, and May 31 balances. (See exhibit 2.3 and 2.4)
c. Post the journal entries to the “T” accounts.
d. Prepare a trial balance as of June 30. (See exhibit 2.9)

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