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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

GENERAL JOURNAL ENTRIES Sengel Moon opened The Bike Doctor. Journalize the following transactions that occurred during the month of October of the current year. Use the following journal pages: October 1–12, page 1; and October 14–29, page 2. Use the following chart of accounts:

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Oct. 1 Moon invested cash in the business, $15,000.

2 Paid shop rental for the month, $300.

3 Purchased bicycle parts on account, $2,000.

5 Purchased office supplies on account, $250.

8 Paid phone bill, $38.

9 Received cash for services, $140.

11 Paid a sports magazine subscription (miscellaneous expense), $15.

Oct. 12 Made payment on account (see Oct. 3 transaction), $100.

14 Paid part-time employee, $300.

15 Received cash for services, $350.

16 Paid utilities bill, $48.

19 Received cash for services, $250.

23 Moon withdrew cash for personal use, $50.

25 Made payment on account (see Oct. 5 transaction), $50.

29 Paid part-time employee, $300.

To determine

Prepare journal entry to record the given transactions.

Explanation

Prepare journal entry to record the given transactions.

DateAccounts title and explanation

Post.

Ref.

Debit

($)

Credit

($)

October 1Cash10115,000 
      Person S’s capital 311 15,000
 (To record owner’s original investment)   
     
October 2Rent expense521300 
      Cash101 300
 (To record the payment of  office rent for October)   
     
October 3Bicycle parts1412,000 
      Accounts Payable202 2,000
 (To record the purchase of bicycle parts on account)   
     
October 5Office supplies142250 
      Accounts Payable202 250
 (To record the purchase of office supplies on account)   
     
October 8Phone expense52538 
      Cash101 38
 (To  record payment of  phone bill)   
     
October 9Cash 101140 
      Repairs fees 401 140
 (To record the cash received for the repairs service)    
     
October 11Miscellaneous expense54915 
      Cash 101 15
 (To record purchase of magazine  subscription)   
 ...

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