Question

June 1: Owner contributed $50,000 in cash to the business.

• June 1: Owner purchased a company vehicle in the amount of $15,000.
• June 3: Owner took out a small business loan in the amount of $25,000.
• June 5: Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month.
• June 5: Owner paid business license fees in the amount of $250 to the county. • June 5: Owner ordered office supplies, on account, in the amount of $750.00.
• June 6: Owner performed service for client on account in the amount of $1,000. • June 9: Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due.
• June 10: Owner paid $250 in advertising costs to the local paper.
• June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20.
• June 15: Owner prepaid business insurance to cover July through December at the rate of $125 per month.
Provide ledger accounts.

Answer 1

Here are the ledger accounts for the given transactions for the month of June.

Step-by-step explanation:

Ledger Accounts for June:

1. Cash Account:

June 1:
- Owner contributed $50,000 in cash (+$50,000).
June 3:
- Owner took out a small business loan in the amount of $25,000 (-$25,000).

2. Vehicle Account:

June 1:
- Owner purchased a company vehicle in the amount of $15,000 (-$15,000).

3. Office Rent Account:

June 5:
- Owner paid rent for June (-$1,195).
June 5:
- Owner prepaid office rent for 6 months to cover July through December (-$1,195 x 6 = -$7,170).

4. Business License Fees Account:

June 5:
- Owner paid business license fees in the amount of $250 (-$250).

5. Office Supplies Account:

June 5:
- Owner ordered office supplies on account in the amount of $750 (+$750).

6. Accounts Receivable Account:

June 6:
- Owner performed service for client on account in the amount of $1,000 (+$1,000).
June 9:
- Owner provided service for client in the amount of $1,500 (+$1,500).

7. Advertising Costs Account:

June 10:
- Owner paid $250 in advertising costs to the local paper (-$250).

8. Wages Payable Account:

June 15:
- Owner recorded wages due to the part-time employee in the amount of $325.

9. Business Insurance Account:

June 15:
- Owner prepaid business insurance to cover July through December (-$125 x 6 = -$750).

Please note that these are sample entries and the actual ledger accounts may vary based on your specific accounting software or system.