Question: Carlos Beltran started an engineering firm called Beltran Engineering. He began operations and completed seven transactions in May, which included his initial investment of $17,000 cash. After those seven transactions, the ledger included the following accounts with normal balances.
Cash . . . . . . . . . . . . . . . . . . . . . . . $26,660
Office supplies . . . . . . . . . . . . . . . . 660
Prepaid insurance . . . . . . . . . . . . . 3,200
Office equipment . . . . . . . . . . . . . 16,500
Accounts payable . . . . . . . . . . . . . 16,500
C. Beltran, Capital . . . . . . . . . . . . . 17,000
C. Beltran, Withdrawals . . . . . . . . 3,740
Engineering fees earned . . . . . . . . 24,000
Rent expense . . . . . . . . . . . . . . . . 6,740
Required: 1. Prepare a trial balance for this business as of the end of May.
Analysis Components
2. Analyze the accounts and their balances and prepare a list that describes each of the seven most likely transactions and their amounts.
3. Prepare a report of cash received and cash paid showing how the seven transactions in part 2 yield the $26,660 ending Cash balance.