Assignment
On July 1, 2016, Matthew Victor opened a retail postal store. During July, the following transactions were completed:
July 2016
1 Matthew invested $20,000 cash in his business, The Mail Shop. In return, he received capital stock.
2 Paid $700 for office supplies
3 Purchased office equipment for $1,500 in cash.
4 Issued a check for $900 for July rent.
7 Paid a premium for $120 for an insurance policy for 12 months on the office equipment, beginning July 1.
8 Purchased $2,000 of copy supplies on account.
14 Received $4,000 cash from a customer for postal fees for mailings.
18 Completed mailings and sent out bills totaling $2,400 for postal fees.
22 Wages earned by employees for the pay period July 5 through July 19 were $300. On this date, the wages were recorded for the July 5-19 pay period, but not paid to the employees.
23 Paid $1,400 to creditors (ie., reduced accounts payable)
26 Collected $800 from customers to apply on account
31 Declared and paid cash dividends of $200.
Additional information as of July 31, 2016:
a) A physical count shows copy supplies on hand total $300.
b) The depreciation on office equipment for the month of July is $40.
Hint: There are three adjusting entries for the month of July.
Required: Prepare the transaction and adjusting entries for the month of July using one of the following methods: traditional journal entry method, T-account method, or columnar (spreadsheet) accounting equation method. Prepare an income statement and balance sheet, in proper form, for the month of July 2016.
Prepare an income statement and balance sheet for the month of July on EXCEL. You must begin by listing all accounts and their balances (or prepare an adjusted trial balance) in EXCEL.