The following ledger accounts were prepared for Davidson Tool Rentals Corporation during the first month of operation ending May 31, 2015. No journal entries were prepared to support of the amounts recorded in the ledger accounts.
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Required: |
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1. |
Reconstruct the transactions that occurred during the month and prepare journal entries to record these transactions, including appropriate descriptions. Use the same accounts numbers (Folio) as those used in the chapter plus the following: |
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Prepaid advertizing |
160 |
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Service revenue |
470 |
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Advertizing expense |
610 |
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Commissions expense |
615 |
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Telephone expense |
669 |
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Calculate the balance in each account. |
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2. |
Prepare a trial balance in numerical order at May 31, 2015. |
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