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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

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

JOURNALIZING AND POSTING TRANSACTIONS Ann Taylor owns a suit tailoring shop. She opened business in September. She rented a small work space and has an assistant to receive job orders and process claim tickets. Her trial balance shows her account balances for the first two months of business.

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Taylor’s transactions for November are as follows:

Nov. 1 Paid rent, $300.

2 Purchased tailoring supplies on account, $150.

3 Purchased a new button hole machine on account, $300.

5 Earned first week’s revenue, $400: $100 in cash and $300 on account.

8 Paid for newspaper advertising, $13.

9 Paid phone bill, $28.

10 Paid electric bill, $21.

11 Received cash on account from customers, $200.

12 Earned second week’s revenue, $450: $200 in cash and $250 on account.

15 Paid assistant, $400.

16 Made payment on account, $100.

17 Paid for magazine subscription (miscellaneous expense), $12.

19 Earned third week’s revenue, $450: $300 in cash, $150 on account.

23 Received cash on account from customers, $300.

24 Paid for newspaper advertising, $13.

26 Paid for postage (miscellaneous expense), $12.

27 Earned fourth week’s revenue, $600: $200 in cash and $400 on account.

30 Received cash on account from customers, $400.

REQUIRED

1. Set up general ledger accounts by entering the balances as of November 1, 20--.

2. Journalize the transactions for November in a two-column general journal. Use the following journal page numbers: November 1–11, page 7; November 12–24, page 8; November 26–30, 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 November 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)

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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