Parrish 3-3 Please post the following transaction in a General Journal then transfer them to the appropriate General Ledger Account.11/1 Jim Peterson starts Florida Ouboard Motor Repair by issuing 100 shares of non-par common stock to himself for $10,000.  Hes deposits the cash to his business checking account at First National Bank11/2 Jim gets $5,000 loan from First National Bank to use for additional start-up funds.  The loan is due in one year with 5% interest.  The bank deposits the proceeds in Jim's buiness checking account11/2 Jim rents space for a repair shop for one month and pays $800 cash11/3 Jim buys equipment for $200 and pays cash 11/3 Jim buys parts inventory for $500 cash11/4 Don Noble, Jim's first customer asks Jim to repair a boat motor.  Jim uses parts cost $30.  He gives Jim a check for $160

Question
Asked Dec 2, 2019
1 views

Parrish 3-3 

Please post the following transaction in a General Journal then transfer them to the appropriate General Ledger Account.

11/1 Jim Peterson starts Florida Ouboard Motor Repair by issuing 100 shares of non-par common stock to himself for $10,000.  Hes deposits the cash to his business checking account at First National Bank

11/2 Jim gets $5,000 loan from First National Bank to use for additional start-up funds.  The loan is due in one year with 5% interest.  The bank deposits the proceeds in Jim's buiness checking account

11/2 Jim rents space for a repair shop for one month and pays $800 cash

11/3 Jim buys equipment for $200 and pays cash 

11/3 Jim buys parts inventory for $500 cash

11/4 Don Noble, Jim's first customer asks Jim to repair a boat motor.  Jim uses parts cost $30.  He gives Jim a check for $160

 

check_circle

Expert Answer

Step 1

Journal Entries

Journal entry in the books of
Post
Particulars
Ref
Debit
Credit
Date
Nov
Bank A/c
01
Dr
10000
To Common Stock A/c
10000
(Being, Capital deposited in bank)
Nov
02 Cash A/c
Dr
5000
To Bank Loan A/c
5000
(Being, loan taken from bank to use as additional start-up
funds)
Nov
Rent Expense A/c
02
Dr
800
To Cash A/c
800
(Being, repair shop taken on rent and cash paid)
help_outline

Image Transcriptionclose

Journal entry in the books of Post Particulars Ref Debit Credit Date Nov Bank A/c 01 Dr 10000 To Common Stock A/c 10000 (Being, Capital deposited in bank) Nov 02 Cash A/c Dr 5000 To Bank Loan A/c 5000 (Being, loan taken from bank to use as additional start-up funds) Nov Rent Expense A/c 02 Dr 800 To Cash A/c 800 (Being, repair shop taken on rent and cash paid)

fullscreen
Step 2

Journal Entries continued.... 

Nov
03 Equipment A/c
To Cash A/c
200
Dr
200
(Being, equipment purchased on cash)
Nov-
03 Inventory A/c
To Cash A/c
Dr
500
500
(Being, part inventory purchased)
Nov
04 Cost of Goods Sold A/c
Dr
30
To Inventory A/c
(Being, Inventory parts used in repair)
Nov
Cash A/c
Dr
04
160
To Service Revenue A/c
160
(Being, repair services provided)
30
help_outline

Image Transcriptionclose

Nov 03 Equipment A/c To Cash A/c 200 Dr 200 (Being, equipment purchased on cash) Nov- 03 Inventory A/c To Cash A/c Dr 500 500 (Being, part inventory purchased) Nov 04 Cost of Goods Sold A/c Dr 30 To Inventory A/c (Being, Inventory parts used in repair) Nov Cash A/c Dr 04 160 To Service Revenue A/c 160 (Being, repair services provided) 30

fullscreen
Step 3

T Accounts&n...

Common Stock Account
Amount Particulars
Particulars
Amount
Bank a/c
10000
Ending Balance
(c/d)
10000
10000
10000
Cash Account
Amount Particulars
Particulars
Amount
Bank Loan a/c
5000 Rent Exp
800
Service Revenue
160 Equipment a/c
Inventory a/c
200
500
Closing Bal
3660
5160
5160
help_outline

Image Transcriptionclose

Common Stock Account Amount Particulars Particulars Amount Bank a/c 10000 Ending Balance (c/d) 10000 10000 10000 Cash Account Amount Particulars Particulars Amount Bank Loan a/c 5000 Rent Exp 800 Service Revenue 160 Equipment a/c Inventory a/c 200 500 Closing Bal 3660 5160 5160

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Book Keeping

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall ...

A: Click to see the answer

question_answer

Q: Question 23 ncements -/1 sions View Policies rences Current Attempt in Progress orations Swifty Corp...

A: Budgeted cash receipts are the cash inflows expected for the budgeted period.

question_answer

Q: On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale ...

A: Prepare the necessary journal entries:

question_answer

Q: Define the concept of going concern?

A: Going concern Concept: The basic principle of this concept is that business is assumed to exist for ...

question_answer

Q: ents Question 19 -/1 View Policies Current Attempt in Progress ions Coronado Industries is planning ...

A: Determine budgeted production in pounds.

question_answer

Q: What is the difference between adjusting entries and correcting entries?

A: The journal entries which are passed with the purpose of balancing the debits and credits at the end...

question_answer

Q: The financial statements are interrelated. (a) What item of financial or operating data appears on b...

A: Income statement is prepared by the company to calculate the amount of net loss or net profit earned...

question_answer

Q: Residual Income $23000 Operating income 45,337 Cost of Capital 12% What is return on investment? Don...

A: The approach of residual income is the estimation of the overall gain that is earned by an investmen...

question_answer

Q: The following data were taken from Mesa Company's balance sheet: Dec. 31, 2019 Dec. 31,2018 $518,000...

A: a. Compute the ratio of liabilities to owner's equity