ACTIVITY 3 - draw up a sales invoice for Septembers 30th. Record the relevant transactions in the day books including cash book. (Remember transaction of 1stSept and 2 Nd Sept. September 7th Received cheque $5000 for private catering job September 9th Cash purchases $450 September 30th paid wages by Cheque $2,896 September 30th sent the following invoice for meals supplied to Naz Rudeen for the month of September. 8 meals per day @ $10 per meal for 20 days. A 5% cash discount will be given if the bill is paid by 10th October
Q: JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews opened a delivery business in March. He rented a…
A: General ledger: General ledger is a record of all accounts of assets, liabilities, and stockholders’…
Q: BILL'S BOARDS Unadjusted Trial Balance At September 30 Credits Account Name Debits Notes $ 10,500…
A: From the given unadjusted trial balance balance sheet has to be prepared. Income statement to…
Q: Date Transactions 1 Issued Check 602 for P4,200 to pay City Properties the monthly rent. 1 Signed a…
A: SOLUTION A JOURNAL IS THE COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…
Q: Enter the following transactions, completing the double entry in the books for the month of May…
A: Double Entry system - It is a system of accounting accepted by all worldly. It basically means…
Q: Daube Industries’ operations for the month of October are summarized as follows: Provided $2,500…
A: When you make its same journal on a regular basis, save it as a template in your accounting…
Q: Daube Industries’ operations for the month of October are summarized as follows: Provided $2,500…
A: Introduction: A journal entry is often used to record a business recorded in the accounting records…
Q: Date Transactions 1 Issued Check 602 for P4,200 to pay City Properties the monthly rent. 1 Signed a…
A: Purchase Journal Purchase Journal is the special journal which is used by businesses to record all…
Q: 20 The company received $3,050 cash in photography fees earned. 31 The company paid $869 cash for…
A: Under the financial accounting system, the each and every financial transactions are recorded in the…
Q: March 25. Received a cheque of ¢9,000,000 from Tyler Ltd after deducting 10% cash discount. March…
A: Ledger The purpose of preparing the ledger account to get the final account balance of each account…
Q: ACTIVITY 8- prepare a trading and profit And Loss account and Balance sheet as at 31st October…
A: The transactions are given for the month of October. Required Prepare Trading and Profit & Loss…
Q: 21. EOM Consulting Services had the following transactions for the month of November, Journalize the…
A: A journal entry is used to record the day-to-day transactions of an organization by debiting and…
Q: Transactions Oct. 1 Paid rent for the month, $2,200. 4 Paid advertising expense, $550. 5 Paid cash…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On November 30, JT's Consulting Services wrote Check 1004 for $7,000 to prepay ? rent for December…
A:
Q: Transactions: June 11. Received cash from sales, $22,000.00. 12. Paid cash for advertising,…
A: Journal Entries: Date General Journal Debit Credit June 11 Cash 22,000 Sales 22,000…
Q: Consider the following transactions Required: For each transaction, determine the amount of revenue…
A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the financial…
Q: Prepare all journal entries Dec Mahmood invested $25,000 cash in his business. Paid office rent for…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Frank Arzillo opened Arzillo TV Repair Shop on November 1. Complete the following for Frank. a)…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: Prepare ledger accounts A. Smith January: Date/Trasaction 1 Started business with £3,000 in cash 2…
A: All amounts are in £.
Q: 5 June 20: Collected cash from a customer on account, $350. June 23: Consulted on the design of a…
A: Financial statements: “Since you have posted multiple questions, we will solve the 1st question for…
Q: DATE TRANSACTIONS Jan. 2 Purchased supplies for $14,000; issued Check 1015. 2 Purchased a one-year…
A: Kindly provide December year-end balance sheet to continue the January transactions and make the…
Q: DATE TRANSACTIONS Jan. 2 Purchased supplies for $14,000; issued Check 1015. 2 Purchased a one-year…
A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into…
Q: Kenneth Dolkart Dispensary purchased supplies on credit for $3,400. Two weeks later, the business…
A: Answer 1:
Q: Prepare a journal entry for the purchase of office supplies on September 30 for $16,250, paying…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: journalize the adjusting entry needed on Dec 31 for each situation. Use the letters to label the…
A: journalize the adjusting entry needed on Dec 31 for each situation is as follows:
Q: AngTindahan Co. is a wholesaler of office and school supplies. The e transactions of AngTindahan Co.…
A: The perpetual inventory system entails employing technology to keep inventory data up to date after…
Q: TRANSACTIONS 1 Paid $4,800 for the current month's RENT 2 Performed Services for $15,000 in cash 3…
A: The journal entries are prepared to Keep the record of day to day transactions.
Q: DATE TRANSACTIONS Jan. 2 Purchased supplies for $14,000; issued Check 1015. 2 Purchased a one-year…
A: As per our protocol we provide solution to one question only or the first three sub-parts only and…
Q: Jim Andrews opened a delivery business in March. He rented a small office and has a part-time…
A: Hi, since you have posted a question with multiple subparts we are solving the 1st 3 subparts for…
Q: services .the Company, called zeeshan crop dusting, began operations immediately. Transactions…
A: Journal entries are passed following the golden rules of accounting Debit all assets and expenses…
Q: What is the credit,debit and folio MARCH 2 - Paid the rent on the shop space for the month, P4,500.…
A: The assets and expenses are debited and liabilities and revenues are credited.
Q: Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days.…
A:
Q: Based on the scenario below complete: (i) any five journal entries, & (ii) draw up T- accounts and…
A: Journal Entries represent the record of an organization’s day-to-day business-related monetary…
Q: Enter the following transactions, completing the double entry in the books for the month of May…
A: Answer: Journal entries for the above transactions
Q: General Ledger Accounts; Trial Balance Diane Bernick opened Bernick's Consulting. Transactions and…
A: Journal Entry This is the first step in the accounting process to enter the required transaction…
Q: Do It! Review 2-03 Tom Rast recorded the following transactions during the month of April. April 3…
A: Hello I am only answering first question as per the policy and if you want other to be answered…
Q: create a unadjusted trial balance
A: Unadjusted trial balance: The unadjusted trial balance is the summary of all the ledger accounts…
Q: Simmons Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable;…
A:
Q: Transactions for the month ended 31/07/2021 Date Description 3/07/2021 The business repaid $8,589 on…
A: The question is based on the concept of Financial Accounting.
Q: Safe Home provides house-sitting for people while they are away on vacation. Some of its customers…
A: Lets understand the basics. There are two type of system follows by the entity which are, (1) Cash…
Q: 1. September 3 Paint houses in the current month for $14,500 on account. 2. September 8 Purchase…
A: Journal entries recording is the first step of whole accounting process, under which atleast one…
Q: Transactions Simmons Consulting Co. has the following accounts in its ledger: Cash; Accounts…
A: Journal entry refers to the process of recording commercial transactions for the first time in the…
help
Step by step
Solved in 3 steps with 3 images
- Case 3-72 Cash- or Accrual-Basis Accounting Karen Ragsdale owns a business that rents parking spots to students at the local university. Karens typical rental contract requires the student to pay the years rent of $450 ($50 per month) on September 1. When Karen prepares financial statements at the end of December, her accountant requires that Karen spread the $450 over the 9 months that each parking Spot is rented. Therefore, Karen can recognize only $200 of revenue (4 months) from each parking spot rental contract in the year the cash is collected and must defer (delay) recognition of the remaining $250 (5 months) to the next year. Karen argues that getting students to agree to rent the parking Spot is the most difficult part of the activity so she Ought to be able to recognize all $450 as revenue when the cash is received from a student. Required: Why do generally accepted accounting principles require the use of accrual accounting rather than cash-basis accounting for transactions like the one described here?Comprehensive Problem 1, Period 2: The Accounting Cycle During the month of May 20--, The Generals Favorite Fishing Hole engaged in the following transactions. These transactions required an expansion of the chart of accounts as shown below. May 1In order to provide snacks for guests on a 24-hour basis, Night signed a contract with Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. Estimated payments are made at the beginning of each month. Night received a check for 200, the estimated commission on sales for May. 2Night purchased a surround sound system and big screen TV with a digital satellite system for the guest lounge. The surround sound system cost 3,600 and has an estimated useful life of five years and no salvage value. The TV cost 8,000, has an estimated useful life of eight years, and has a salvage value of 800. Night paid cash for both items. 2Paid for Mays programming on the new digital satellite system, 125. 3Nights office manager returned 100 worth of office supplies to Gordon Office Supply. Night received a 100 reduction on the account. 3Deposited registration fees, 52,700. May 3Paid rent for lodge and campgrounds for the month of May, 40,000. 3In preparation for the purchase of a nearby campground, Night invested an additional 600,000. 4Paid Gordon Office Supply on account, 400. 4Purchased the assets of a competing business and paid cash for the following: land, 100,000; lodge, 530,000; and fishing boats, 9,000. The lodge has a remaining useful life of 50 years and a 50,000 salvage value. The boats have remaining lives of five years and no salvage value. 5Paid Mays insurance premium for the new camp, 1,000. (See above transaction.) 5Purchased food supplies from Acme Super Market on account, 22,950. 5Purchased office supplies from Gordon Office Supplies on account, 1,200. 7Night paid 40 each for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master. The magazines are published monthly. 10Deposited registration fees, 62,750. 13Paid wages to fishing guides, 30,000. (Dont forget wages payable.) 14A guest became ill and was unable to stay for the entire week. A refund was issued in the amount of 1,000. 17Deposited registration fees, 63,000. 19Purchased food supplies from Acme Super Market on account, 18,400. 21Deposited registration fees, 63,400. 23Paid 2,500 for advertising spots on National Sports Talk Radio. 25Paid repair fee for damaged boat, 850. 27Paid wages to fishing guides, 30,000. 28Paid 1,800 for advertising spots on billboards. 29Purchased food supplies from Acme Super Market on account, 14,325. 30Paid utilities bill, 3,300. 30Paid phone bill, 1,800. 30Paid Acme Super Market on account, 47,350. 31Bob Night withdrew cash for personal use, 7,500. Adjustment information at the end of May is provided below. (a) Total vending machine sales were 2,300 for the month of May. A 10% commission is earned on these sales. (b) Straight-line depreciation is used for the 10 boats purchased on April 2 for 60,000. The useful life for these assets is five years and there is no salvage value. A full months depreciation was taken in April on these boats. Straight-line depreciation is also used for the two boats purchased in May. Make one adjusting entry for all depreciation on the boats. (c) Straight-line depreciation is used to depreciate the surround sound system. (d) Straight-line depreciation is used to depreciate the big screen TV. (e) Straight-line depreciation is used for the building purchased in May. (f) On April 2, Night paid 9,000 for insurance during the six-month camping season. Mays portion of this premium was used up during this month. (g) Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master. (h) Office supplies remaining on hand, 150. (i) Food supplies remaining on hand, 5,925. (j) Wages earned, but not yet paid at the end of May, 6,000. REQUIRED 1. Enter the transactions in a general journal. Enter transactions from May 14 on page 5, May 528 on page 6, and the remaining entries on page 7. To save time and space, dont enter descriptions for the journal entries. 2. Post the entries to the general ledger. (If you are not using the working papers that accompany this text, you will need to enter the account titles, account numbers, and balances from April 30 in the general ledger accounts.) 3. Prepare a trial balance on a work sheet. 4. Complete the work sheet. 5. Journalize the adjusting entries on page 8 of the general journal. 6. Post the adjusting entries to the general ledger. 7. Prepare the income statement. 8. Prepare the statement of owners equity. 9. Prepare the balance sheet. 10. Journalize the closing entries on page 9 of the general journal. 11. Post the closing entries to the general ledger. 12. Prepare a post-closing trial balance.Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. The): complete their typical case in 6 months or less and collect from the typical client within 1 additional month. b. Johnstons Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash and any receivables are generally paid by the end of the following month. c. Mortondos is a womens clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit and the typical customer pays within 1 month of sale. d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Required: For each of the businesses described above, indicate the length of the operating cycle.
- Brief Exercise 2-32 Journalize Transactions Galle Inc. entered into the following transactions during January. January, 1: Borrowed $50,000 from First Street Bank by signing a note payable. January, 4: Purchased $25,000 of equipment for cash. January, 6: Paid $500 to landlord for rent for January. January, 15: Performed services for customers on account. $10,000. January, 25: Collected $3,000 from customers for services performed in Transaction d. January, 30: Paid salaries of $2,500 for the current month. Required: Prepare journal entries for the transactions.Comprehensive problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement. 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 1-15; 9,180. 16. Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 16-20, 4,820. 25. Recorded cash from cash clients for fees earned for the period May 17-23, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Paid dividends, 10,500. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two- column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during May is 275. b. Supplies on hand on May 31 are 715. c. Depreciation of office equipment for May is 330. d. Accrued receptionist salary on May 31 is 325. e. Rent expired during May is 1,600. f. Unearned fees on May 31 are 3,210. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account 34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.Exercise 2-38 Events and Transactions The following economic events related to K the bill need not be paid until March 1, 2019. On February, 15, Kqualify and does not qualify. indicate whether each of the above events would qualify as a transaction and be recognized and recorded in the accounting system on the date indicated. 2. CONCEPTUAL CONNECTION For any events that did not qualify as a transaction to be recognized and recorded, explain why it does not qualify.
- Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during January. Borrowed $50,000 from First Street Bank by signing a new payable. Purchased $25,000 of equipment for cash. (Continued) Paid $500 to landlord for rent for January. Performed services for customers on account, $10,000. Collected $31000 from customers for services performed in Transaction d. Paid salaries of $2,500 for the current month. Required: Show the effect of each transaction using the following model.Transactions; financial statements 2. Net income: 10,850 On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: a. Opened a business bank account with a deposit of 24,000 in exchange for common stock. b. Paid rent on office and equipment for the month, 3,600. c. Paid automobile expenses for month, 1,350, and miscellaneous expenses, 600. d. Purchased supplies on account, 1,200. e. Earned sales commissions, receiving cash, 19,800. f. Paid creditor on account, 750. g. Paid office salaries, 2,500. h. Paid dividends, 3,500. i. Determined that the cost of supplies on hand was 300; therefore, the cost of supplies used was 900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: 2. Prepare an income statement for April, a statement of stockholders equity for April, and a balance sheet as of April 30.Brief Exercise 2-28 Assumptions and Principles Five common accounting practices are listed below: A customer pays $20 to mail a package on December 30. The delivery company recognizes revenue when the package is delivered in January. Jim Trotter owns C**S Heating Company. In preparing the financial statements, Trotter makes sure that the purchase of a new truck for personal use is not included in C&S’s financial statements. Moseley Inc. recorded land at its purchase price of $50,000. In future periods, the land is reflected in the financial statements at $50,000. Mack Company purchases inventory in March. However, it does not expense that inventory until it is sold in April. Mueller Inc. prepares quarterly and annual financial statements. Required: Identify the amounting principle or assumption that best describes each practice
- Problem 2-593 Journalizing Transactions Monilast Chemicals engaged in the following transactions during December 2019: Dec 2 Paid rent on office furniture, $1,200. 3 Borrowed $25,030 on a 9-month, 3% note. 7 Provided services on credit. $42,600. 10 Purchased supplies on credit, $2,850. 13 Collected accounts receivable, $20,150. 19 Issued common stock, $50000. 22 Paid employee wages for December. $13,825. 23 Paid accounts payable, $1,280. 25 Provided services for cash, $13,500. 30 Paid utility bills for December, $1,975. Required: Prepare a journal entry for each transaction.Journal entries and trial balance On October 1, 20Y4, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 18,000. 4. Paid rent for period of October 4 to end of month, 3,000. 10. Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13. Purchased equipment on account, 10,500. 14. Purchased supplies for cash, 2,100. Oct. 15. Paid annual premiums on property and casualty insurance, 3,600. 15. Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21. Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24. Recorded jobs completed on account and sent invoices to customers, 14,150. 26. Received an invoice for truck expenses, to be paid in November, 700. 27. Paid utilities expense, 2,240. 27. Paid miscellaneous expenses, 1,100. 29. Received cash from customers on account, 7,600. 30. Paid wages of employees, 4,800. 31. Paid dividends, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Equipment 18 Truck 21 Notes Payable 22 Accounts Payable 31 Common Stock 33 Dividends 41 Fees Earned 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 20Y4. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a business called Nickies Neat Ideas in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Nicole Lawrence, Capital; Nicole Lawrence, Drawing; Professional Fees; Rent Expense; and Utilities Expense. The following transactions occurred during the first month of business. Record these transactions in T accounts. After all transactions have been recorded, foot and balance the accounts if necessary. (a) Invested cash in the business, 8,000. (b) Purchased office supplies for cash, 500. (c) Purchased office furniture for cash, 8,000. (d) Purchased computer and printer on account, 5,000. (e) Received cash from clients for services, 4,000. (f) Paid cash on account for computer and printer purchased in transaction (d), 2,000. (g) Earned professional fees on account during the month, 7,000. (h) Paid office rent for January, 900. (i) Paid utility bills for the month, 600. (j) Received cash from clients that were billed previously in transaction (g), 3,000. (k) Withdrew cash for personal use, 4,000. TRIAL BALANCE Based on the transactions recorded in Exercise 3-7B, prepare a trial balance for Nickies Neat Ideas as of January 31, 20--.