Concept explainers
1.
Introduction: A journal is used to record financial transactions. It shows debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are
The
1.
Explanation of Solution
- Journal entries to record the transactions in the month of June
S.no | Account title and Explanation | PR | Debit | Credit |
a. | Cash | 101 | $100,000 | |
Office equipment | 163 | $5,000 | ||
Drafting equipment | 164 | $60,000 | ||
J.A Capital | 301 | $165,000 | ||
Owners investment in business | ||||
b. | Land | 172 | $49,000 | |
Cash | 101 | $6,300 | ||
Notes payable | 250 | $42,700 | ||
Record purchase of land for cash and note payable | ||||
c. | Building | 170 | $55,000 | |
Cash | 101 | $55,000 | ||
Record purchase of building for cash | ||||
d. | Prepaid insurance | 108 | $3,000 | |
Cash | 101 | $3,000 | ||
Record payment of cash for 18 month insurance | ||||
e. | Cash | 101 | $6,200 | |
Engineering fees earned | 402 | $6,200 | ||
Record receipt of cash for plan completed | ||||
f. | Drafting equipment | 164 | $20,000 | |
Cash | 101 | $9,500 | ||
Notes payable | 250 | $10,500 | ||
Record purchase of drafting equipment for cash and note payable | ||||
g. | 106 | $14,000 | ||
Engineering fees earned | 402 | $14,000 | ||
Record earnings of fees | ||||
h. | Office equipment | 163 | $1,150 | |
Accounts payable | 201 | $1,150 | ||
Record purchase of office equipment on credit | ||||
i. | Accounts receivable | 106 | $22,000 | |
Engineering fees earned | 402 | $22,000 | ||
Record earnings of fees | ||||
j. | Equipment rental expense | 602 | $1,333 | |
Accounts payable | 2o1 | $1,333 | ||
Record accrued rental equipment rent | ||||
k. | Cash | 101 | $7,000 | |
Accounts receivable | 106 | $7,000 | ||
Record receipt of cash on receivables | ||||
l. | Wage expense | 601 | $1,200 | |
Cash | 101 | $1,200 | ||
Record payment of wages to assistant | ||||
m. | Accounts payable | 201 | $1,150 | |
Cash | 101 | $1,150 | ||
Record payment of cash for accounts payable | ||||
n. | Repairs equipment | 604 | $925 | |
Cash | 101 | $925 | ||
Record payment of cash for repairs | ||||
o. | J.A withdrawals | 302 | $9,480 | |
Cash | 101 | $9,480 | ||
Record withdrawals by owner for personal use | ||||
P. | Wages expenses | 601 | $1,200 | |
Cash | 101 | $1,200 | ||
Record payment of cash for wages | ||||
q. | Advertising expense | 603 | $2,500 | |
Cash | 101 | $2,500 | ||
Record payment of cash for advertising |
2.
Introduction: A journal is used to record financial transactions. It shows debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The given ledger accounts
2.
Explanation of Solution
Posting of journal entries in ledgers
CashAccount no 101
Date | PR | Account title | Debit | Credit | Balance |
a. | A.N Capital | $100,000 | $100,000 | ||
b. | Land | $6,300 | $93,700 | ||
c. | Building | $55,000 | $38,700 | ||
d. | Prepaid insurance | $3,000 | $35,700 | ||
e. | Engineering fees earned | $6,200 | $41,900 | ||
f. | Drafting equipment | $9,500 | $32,400 | ||
k. | Accounts receivable | $7,000 | $39,400 | ||
l. | Wages expenses | $1,200 | $38,200 | ||
m. | Accounts payable | $1,150 | $37,050 | ||
n. | Repairs expenses | $925 | $36,125 | ||
o. | J.A withdrawals | $9,480 | $26,645 | ||
p. | Wages expense | $1,200 | $25,445 | ||
q. | Advertising expense | $2,500 | $22,945 |
Accounts receivableAccount no 106
Date | PR | Account title | Debit | Credit | Balance |
g. | Engineering fees earned | $14,000 | $14,000 | ||
i. | Engineering fees earned | $22,000 | $36,000 | ||
k. | Cash | $7,000 | $29,000 |
Prepaid insuranceAccount no 108
Date | PR | Account title | Debit | Credit | Balance |
d. | Cash | $3,000 | $3,000 |
Drafting equipmentAccount no 164
Date | PR | Account title | Debit | Credit | Balance |
a. | J.A Capital | $60,000 | $60,000 | ||
f. | Cash | $9,500 | $69,500 | ||
Notes payable | $10,500 | $80,000 |
BuildingAccount no 170
Date | PR | Account title | Debit | Credit | Balance |
c. | Cash | $55,000 | $55,000 |
LandAccount no 172
Date | PR | Account title | Debit | Credit | Balance |
b. | Cash | $6,300 | $6,300 | ||
Notes payable | $42,700 | $49,000 |
Office equipmentAccount no 163
Date | PR | Account title | Debit | Credit | Balance |
a. | J.A Capital | $5,000 | $5,000 | ||
h. | Accounts payable | $1,150 | $6,150 |
Accounts PayableAccount no 201
Date | PR | Account title | Debit | Credit | Balance |
h. | Office equipment | $1,150 | $1,150 | ||
j. | Rental equipment expense | $1,333 | $2,483 | ||
m. | Cash | $1,150 | $1,333 |
Notes payableAccount no 250
Date | PR | Account title | Debit | Credit | Balance |
b. | Land | $42,700 | $42,700 | ||
f. | Drafting equipment | $10,500 | $53,200 |
J.A CapitalAccount no 301
Date | PR | Account title | Debit | Credit | Balance |
a. | Cash | $100,000 | $100,000 | ||
Office equipment | $5,000 | $105,000 | |||
d. | Drafting equipment | $60,000 | $165,000 |
J.A WithdrawalsAccount no 302
Date | PR | Account title | Debit | Credit | Balance |
o. | Cash | $9,480 | $9,480 |
Engineering Fees earnedAccount no 402
Date | PR | Account title | Debit | Credit | Balance |
e. | Cash | $6,200 | $6,200 | ||
g. | Accounts receivable | $14,000 | $20,200 | ||
I, | Accounts receivable | $22,000 | $42,200 |
Wages expenseAccount no 601
Date | PR | Account title | Debit | Credit | Balance |
l. | Cash | $1,200 | $1,200 | ||
p. | Cash | $1,200 | $2,400 |
Equipment rental expensesAccount no 602
Date | PR | Account title | Debit | Credit | Balance |
j. | Accounts payable | $1,333 | $1,333 |
Advertising expensesAccount no 603
Date | PR | Account title | Debit | Credit | Balance |
q. | Cash | $2,500 | $2,500 |
Repair expensesAccount no 604
Date | PR | Account title | Debit | Credit | Balance |
n. | Cash | $925 | $925 |
3.
Introduction: A journal is used to record financial transactions. It shows debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The
3.
Answer to Problem 5GLP
Trial balance total $261,733
Explanation of Solution
Trial balance
Account title | Debit | Credit |
Cash | $22,945 | |
Accounts receivable | $29,000 | |
Prepaid insurance | $3,000 | |
Drafting equipment | $80,000 | |
Office equipment | $6,150 | |
Land | $49,000 | |
Building | $55,000 | |
Accounts payable | $1,333 | |
Note payable | $53,200 | |
J.A Capital | $165,000 | |
J.A Withdrawals | $9,480 | |
Engineering fees earned | $42,200 | |
wages expense | $2,400 | |
Equipment rental expense | $1,333 | |
Advertising expense | $2,500 | |
Repair expenses | $925 | |
Total | $261,733 | $261,733 |
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Chapter 2 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
- 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?arrow_forwardJournal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 40,000. b. Paid rent on office and equipment for the month, 4,800. c. Purchased supplies on account, 2,150. d. Paid creditor on account, 1,100. e. Earned sales commissions, receiving cash, 18,750. f. Paid automobile expenses (including rental charge) for month, 1,580, and miscellaneous expenses, 800. g. Paid office salaries, 3,500. h. Determined that the cost of supplies used was 1,300. i. Paid dividends, 1,500. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October.arrow_forwardEFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.arrow_forward
- S. Davis, a graphic artist, opened a studio for her professional practice on August 1. The account headings are presented below. Transactions completed during the month follow. a. Davis deposited 20,000 in a bank account in the name of the business. b. Bought office equipment on account from Starkey Equipment Company, 4,120. c. Davis invested her personal photographic equipment, 5,370. (Increase the account Photo Equipment and increase the account S. Davis, Capital.) d. Paid the rent for the month, 1,500, Ck. No. 1000 (Rent Expense). e. Bought supplies for cash, 215, Ck. No. 1001. f. Bought insurance for two years, 1,840, Ck. No. 1002. g. Sold graphic services for cash, 3,616 (Professional Fees). h. Paid the salary of the part-time assistant, 982, Ck. No. 1003 (Salary Expense). i. Received and paid the bill for telephone service, 134, Ck. No. 1004 (Telephone Expense). j. Paid cash for minor repairs to graphics equipment, 185, Ck. No. 1005 (Repair Expense). k. Sold graphic services for cash, 3,693 (Professional Fees). l. Paid on account to Starkey Equipment Company, 650, Ck. No. 1006. m. Davis withdrew cash for personal use, 1,800, Ck. No. 1007. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.arrow_forwardJournal entries and trial balance Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y3, follows: The following business transactions were completed by Elite Realty during April 20Y3: Apr. 1. Paid rent on office for month, 6,500. 2. Purchased office supplies on account, 2,300. 5. Paid insurance premiums, 6,000. 10. Received cash from clients on account, 52,300. 15. Purchased land for a future building site for 200,000, paying 30,000 in cash and giving a note payable for the remainder. 17. Paid creditors on account, 6,450. 20. Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, 325. 23. Paid advertising expense, 4,300. Enter the following transactions on Page 19 of the two-column journal: 27. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, 2,500. 28. Paid automobile expense (including rental charges for an automobile), 1,500. 29. Paid miscellaneous expenses, 1,400. 30. Recorded revenue earned and billed to clients during the month, 57,000. 30. Paid salaries and commissions for the month, 11,900. 30. Paid dividends, 4,000. 30. Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of 10,000. Instructions 1. Record the April 1, 20Y3, balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 20Y3. 5. Assume that the April 30 transaction for salaries and commissions should have been 19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide? The following business transactions were completed by Elite Realty during April 20Y3: Apr. 1. Paid rent on office for month, 6,500. 2. Purchased office supplies on account, 2,300. 5. Paid insurance premiums, 6,000. 10. Received cash from clients on account, 52,300. 15. Purchased land for a future building site for 200,000, paying 30,000 in cash and giving a note payable for the remainder. 17. Paid creditors on account, 6,450. 20. Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, 325. 23. Paid advertising expense, 4,300. Enter the following transactions on Page 19 of the two-column journal: 27. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, 2,500. 28. Paid automobile expense (including rental charges for an automobile), 1,500. 29. Paid miscellaneous expenses, 1,400. 30. Recorded revenue earned and billed to clients during the month, 57,000. 30. Paid salaries and commissions for the month, 11,900. 30. Paid dividends, 4,000. 30. Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of 10,000. Instructions 1. Record the April 1, 20Y3, balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 20Y3. 5. Assume that the April 30 transaction for salaries and commissions should have been 19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?arrow_forwardT ACCOUNTS AND TRIAL BALANCE Sue Jantz started a business in August 20-- called Jantz Plumbing Service. Jantz hired a part-time college student as an administrative assistant. Jantz has decided to use the following accounts: The following transacrions occurred during August: (a) Invested cash in the business, 30,000. (b) Purchased a used van for cash, 8,000. (c) Purchased plumbing equipment on account, 4,000. (d) Received cash for services rendered, 3,000. (e) Paid cash on account owed from transaction (c), 1,000. (f) Paid rent for the month, 700. (g) Paid phone bill, 100. (h) Earned revenue on account, 4,000. (i) Purchased office supplies for cash, 300. (j) Paid wages to student, 500. (k) Purchased a one-year insurance policy, 800. (l) Received cash from services performed in transaction (h), 3,000. (m) Paid cash for advertising expense, 2,000. (n) Purchased additional plumbing equipment for 2,000, paying 500 cash and spreading the remaining payments over the next six months. (o) Earned revenue from services for the remainder of the month of 2,800: 1,100 in cash and 1,700 on account. (p) Withdrew cash at the end of the month, 3,000. REQUIRED 1. Enter the transactions in T accounts, identifying each transaction with its responding letter. 2. Foot and balance the accounts where necessary. 3. Prepare a trial balance as of August 31, 20--.arrow_forward
- 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. Assets Revenues 101 Cash 401 Registration Fees 122 Accounts Receivable 404 Vending Commission Revenue 142 Office Supplies 144 Food Supplies Expenses 145 Prepaid Insurance 511 Wages Expense 146 Prepaid Subscriptions 512 Advertising Expense 161 Land 521 Rent Expense 171 Buildings 523 Office Supplies Expense 171.1 Accum. Depr.Buildings 524 Food Supplies Expense 181 Fishing Boats 525 Phone Expense 181.1 Accum. Depr.Fishing Boats 533 Utilities Expense 182 Surround Sound System 535 Insurance Expense 182.1 Accum. Depr.Surround Sound Sys. 536 Postage Expense 183 Big Screen TV 537 Repair Expense 183.1 Accum. Depr.Big Screen TV 540 Depr. Exp.Buildings 541 Depr. Exp.Surround Sound Sys. Liabilities 202 Accounts Payable 542 Depr. Exp.Fishing Boats 219 Wages Payable 543 Depr. Exp.Big Screen TV 546 Satellite Programming Exp. Owners Equity 548 Subscriptions Expense 311 Bob Night, Capital 312 Bob Night, Drawing 313 Income Summary May 1 In 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. 2 Night 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. 2 Paid for Mays programming on the new digital satellite system, 125. May 3 Nights office manager returned 100 worth of office supplies to Gordon Office Supply. Night received a 100 reduction on the account. 3 Deposited registration fees, 52,700. 3 Paid rent for lodge and campgrounds for the month of May, 40,000. 3 In preparation for the purchase of a nearby campground, Night invested an additional 600,000. 4 Paid Gordon Office Supply on account, 400. 4 Purchased 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. 5 Paid Mays insurance premium for the new camp, 1,000. (See above transaction.) 5 Purchased food supplies from Acme Super Market on account, 22,950. 5 Purchased office supplies from Gordon Office Supplies on account, 1,200. 7 Night paid 40 each for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master. The magazines are published monthly. 10 Deposited registration fees, 62,750. 13 Paid wages to fishing guides, 30,000. (Dont forget wages payable from prior month.) 14 A guest became ill and was unable to stay for the entire week. A refund was issued in the amount of 1,000. 17 Deposited registration fees, 63,000. 19 Purchased food supplies from Acme Super Market on account, 18,400. 21 Deposited registration fees, 63,400. 23 Paid 2,500 for Mays advertising spots on National Sports Talk Radio. 25 Paid repair fee for damaged boat, 850. 27 Paid wages to fishing guides, 30,000. 28 Paid 1,800 for Mays advertising spots on billboards. 29 Purchased food supplies from Acme Super Market on account, 14,325. 30 Paid utilities bill, 3,300. 30 Paid phone bill, 1,800. 30 Paid Acme Super Market on account, 47,350. 31 Bob 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 7, May 528 on page 8, and the remaining entries on page 9. 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 10 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 11 of the general journal. 11. Post the closing entries to the general ledger. 12. Prepare a post-closing trial balance.arrow_forwardKelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. 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 115, 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 cl1art of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, 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, 2018, 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 d1e journal. (Income Summary is account #34 in d1e 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.arrow_forwardANALYSIS OF TRANSACTIONS Charles Chadwick opened a business called Charlies Detective Service in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Charles Chadwick, Capital; Charles Chadwick, 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 are recorded, foot and balance the accounts if necessary. (a) Invested cash in the business, 30,000. (b) Bought office supplies for cash, 300. (c) Bought office furniture for cash, 5,000. (d) Purchased computer and printer on account, 8,000. (e) Received cash from clients for services, 3,000. (f) Paid cash on account for computer and printer purchased in transaction (d), 4,000. (g) Earned professional fees on account during the month, 9,000. (h) Paid cash for office rent for January, 1,500. (i) Paid utility bills for the month, 800. (j) Received cash from clients billed in transaction (g), 6,000. (k) Withdrew cash for personal use, 3,000.arrow_forward
- 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, 18,000. (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.arrow_forwardTRANSACTION ANALYSIS George Atlas started a business on June 1,20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side. (a ) Invested cash in the business, 7,000. (b) Purchased equipment for cash, 900. (c) Purchased equipment on account, 1,500. (d) Paid cash on account for equipment purchased in transaction (c), 800. (e) Withdrew cash for personal use, 1,100. FOOT AND BALANCE T ACCOUNTS Foot and balance the T accounts prepared in Exercise 3-5B if necessary.arrow_forwardANALYSIS 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--.arrow_forward
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