Roshaun Gould started a Web consulting firm called Gould Solutions. He began operations and completed seven transactions in April that resulted in the following accounts, which all have normal balances.
Cash . . . . . . . . . . . . . . . . . . . . . . . $19,982
Office supplies . . . . . . . . . . . . . . . . 760
Prepaid rent . . . . . . . . . . . . . . . . . 1,800
Office equipment . . . . . . . . . . . . . 12,250
Accounts payable . . . . . . . . . . . . . 12,250
R. Gould, Capital . . . . . . . . . . . . . . 15,000
R. Gould, Withdrawals . . . . . . . . . . 5,200
Consulting fees earned . . . . . . . . . 20,400
Operating expenses . . . . . . . . . . . 7,658
Required:
1. Prepare a trial balance for this business as of the end of April.Analysis Component
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 $19,982 ending Cash balance.