lee adkins is a portrait artist the following schedule represents lee s combined cha 502417

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

Account number 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

2,3005

20

Salaries Expense

2,1005

40

Utilities Expense

2,000

$99,000

$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)