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JOURNALIZING AND POSTING TRANSACTIONS Benito Mendez opened Mendez Appraisals. He rented office space and has a part-time secretary to answer the phone and make appraisal appointments. His chart of accounts is as follows: Mendez’s transactions for the first month of business are as follows: May 1 Mendez invested cash in the business, $5,000. 2 Paid rent, $500. 3 Purchased office supplies, $100. 4 Purchased office equipment on account, $2,000. 5 Received cash for services rendered, $280. 8 Paid phone bill, $38. 9 Paid electric bill, $42. 10 Received cash for services rendered, $310. 13 Paid part-time employee, $500. 14 Paid car rental for out-of-town trip, $200. 15 Paid for newspaper ad, $30. 18 Received cash for services rendered, $620. 19 Paid mileage reimbursement for part-time employee’s use of personal car for business deliveries (transportation expense), $22. 21 Mendez withdrew cash for personal use, $50. 23 Made payment on account for office equipment purchased earlier, $200. May 24 Earned appraisal fee, which will be paid in a week, $500. 26 Paid for newspaper ad, $30. 27 Paid for local softball team sponsorship (miscellaneous expense), $15. 28 Paid part-time employee, $500. 29 Received cash on account, $250. 30 Received cash for services rendered, $280. 31 Paid cab fare (transportation expense), $13. REQUIRED 1. Set up general ledger accounts from the chart of accounts. 2. Journalize the transactions for May in a two-column general journal. Use the following journal page numbers: May 1–10, page 1; May 13–24, page 2; May 26–31, page 3. 3. Post the transactions to the general ledger. 4. Prepare a trial balance. 5. Prepare an income statement and a statement of owner’s equity for the month of May, and a balance sheet as of May 31, 20--.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 4, Problem 9SPB
Textbook Problem

JOURNALIZING AND POSTING TRANSACTIONS Benito Mendez opened Mendez Appraisals. He rented office space and has a part-time secretary to answer the phone and make appraisal appointments. His chart of accounts is as follows:

Chapter 4, Problem 9SPB, JOURNALIZING AND POSTING TRANSACTIONS Benito Mendez opened Mendez Appraisals. He rented office space

Mendez’s transactions for the first month of business are as follows:

May 1 Mendez invested cash in the business, $5,000.

2 Paid rent, $500.

3 Purchased office supplies, $100.

4 Purchased office equipment on account, $2,000.

5 Received cash for services rendered, $280.

8 Paid phone bill, $38.

9 Paid electric bill, $42.

10 Received cash for services rendered, $310.

13 Paid part-time employee, $500.

14 Paid car rental for out-of-town trip, $200.

15 Paid for newspaper ad, $30.

18 Received cash for services rendered, $620.

19 Paid mileage reimbursement for part-time employee’s use of personal car

for business deliveries (transportation expense), $22.

21 Mendez withdrew cash for personal use, $50.

23 Made payment on account for office equipment purchased earlier, $200.

May 24 Earned appraisal fee, which will be paid in a week, $500.

26 Paid for newspaper ad, $30.

27 Paid for local softball team sponsorship (miscellaneous expense), $15.

28 Paid part-time employee, $500.

29 Received cash on account, $250.

30 Received cash for services rendered, $280.

31 Paid cab fare (transportation expense), $13.

REQUIRED

1. Set up general ledger accounts from the chart of accounts.

2. Journalize the transactions for May in a two-column general journal. Use the following journal page numbers: May 1–10, page 1; May 13–24, page 2; May 26–31, page 3.

3. Post the transactions to the general ledger.

4. Prepare a trial balance.

5. Prepare an income statement and a statement of owner’s equity for the month of May, and a balance sheet as of May 31, 20--.

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Chapter 4 Solutions

College Accounting, Chapters 1-27
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Ch. 4 - A check stub serves as a source document for what...Ch. 4 - Indicate the information that would be entered for...Ch. 4 - Indicate the information that would be entered for...Ch. 4 - Dunkin Company made the following entry for the...Ch. 4 - Trace the flow of accounting information through...Ch. 4 - Name a source document that provides information...Ch. 4 - Explain the purpose of a chart of accounts.Ch. 4 - Name the five types of financial statement...Ch. 4 - Where is the first formal accounting record of a...Ch. 4 - Describe the four steps required to journalize a...Ch. 4 - In what order are the accounts customarily placed...Ch. 4 - Explain the primary advantage of a general ledger...Ch. 4 - Explain the five steps required when posting the...Ch. 4 - What information is entered in the Posting...Ch. 4 - Explain why the ledger can still contain errors...Ch. 4 - What is a slide error?Ch. 4 - What is a transposition error?Ch. 4 - What is a correcting entry?Ch. 4 - SERIES A EXERCISES SOURCE DOCUMENTS Source...Ch. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Diane Bernick has opened...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - FINANCIAL STATEMENTS From the following trial...Ch. 4 - FINDING AND CORRECTING ERRORS On May 25, after the...Ch. 4 - SERIES A PROBLEMS JOURNALIZING AND POSTING...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews...Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - SOURCE DOCUMENTS What type of information is found...Ch. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Sengel Moon opened The...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - FINANCIAL STATEMENTS From the following trial...Ch. 4 - FINDING AND CORRECTING ERRORS On April 25, after...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Benito...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Ann Taylor...Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - MANAGING YOUR WRITING You are a public accountant...Ch. 4 - MASTERY PROBLEM Barry Bird opened the Barry Bird...Ch. 4 - CHALLENGE PROBLEM Journal entries and a trial...

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