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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews opened a delivery business in March. He rented a small office and has a part-time assistant. His trial balance shows accounts for the first three months of business.

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Andrews’ transactions for the month of June are as follows:

June 1 Paid rent, $300.

2 Performed delivery services for $300: $100 in cash and $200 on account.

4 Paid for newspaper advertising, $15.

6 Purchased office supplies on account, $180.

7 Received cash for delivery services rendered, $260.

9 Paid cash on account (truck payment), $200.

10 Purchased a copier (office equipment) for $700: paid $100 in cash and put $600 on account.

June 11 Made a contribution to the Red Cross (charitable contributions), $20.

12 Received cash for delivery services rendered, $380.

13 Received cash on account for services previously rendered, $100.

15 Paid a part-time worker, $200.

16 Paid electric bill, $36.

18 Paid phone bill, $46.

19 Received cash on account for services previously rendered, $100.

20 Andrews withdrew cash for personal use, $200.

21 Paid for gas and oil, $32.

22 Made payment on account (for office supplies), $40.

24 Received cash for services rendered, $340.

26 Paid for a magazine subscription (miscellaneous expense), $15.

27 Received cash for services rendered, $180.

27 Received cash on account for services previously rendered, $100.

29 Paid for gasoline, $24.

30 Paid a part-time worker, $200.

REQUIRED

1. Set up general ledger accounts by entering the balances as of June 1.

2. Journalize the transactions for June in a two-column general journal. Use the following journal pages: June 1–10, page 7; June 11–20, page 8; June 21–30, page 9.

3. Post the entries to the general ledger.

4. Prepare a trial balance.

1.

To determine

Set up general ledger accounts by entering the balances as of June 1.

Explanation

General ledger:

General ledger is a record of all accounts of assets, liabilities, and stockholders’ equity, necessary to prepare financial statements.

(Figure 1)

(Figure 2)

(Figure 3)

(Figure 4)

(Figure 5)

(Figure 6)

(Figure 7)

(Figure 8)

2.

To determine

Prepare journal entry to record the given transactions.

3.

To determine

Post the entries to the general ledger.

4.

To determine

Prepare a trial balance.

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