
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Journalizing transactions, posting to T-accounts, and preparing a
Consider the following transactional data for the first month of operations for Crystal Clear Cleaning.
Requirements
- Journalize the transactions, using the following accounts: Cash;
Accounts Receivable ; Cleaning Supplies; Prepaid Rent; Prepaid insurance; Equipment; Truck; Accounts Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Advertising Expense; and Utilities Expense. Explanations are not required. - Open a T-account for each account.
Post the journal entries to the T-accounts, and calculate account balances.- Prepare a trial balance as of November 30, 2018.

Transcribed Image Text:Nov. 1
Stockholders contributed $15,000 and a truck, with a market value of
$3,000, to the business in exchange for common stock.
2 The business paid $4,000 to Pleasant Properties for November through
February rent. (Debit Prepaid Rent)
3 Paid $4,800 for a business insurance policy for the term November 1, 2018
through October 31, 2019. (Debit Prepaid Insurance)
Purchased cleaning supplies on account, $320.
5 Purchased on account an industrial vacuum cleaner costing $1,500. The
invoice is payable November 25.
7 Paid $3,900 for a computer and printer.
4.
6.
Performed cleaning services on account in the amount of $4,700.
10 Received $200 for services rendered on November 9.
15 Paid employees, $400.
Received $15,000 for a 1-year contract beginning November 16 for
cleaning services to be provided. Contract begins November 16, 2018, and
ends November 15, 2019. (Credit Unearned Revenue)
16
17 Provided cleaning services and received $400 cash.
18 Received a utility bill for $175 with a due date of December 4, 2018. (Use
Accounts Payable)
20
Borrowed $36,000 from bank with interest rate of 6% per year.
21
Received $500 on account for services performed on November 9.
25
Paid $750 on account for vacuum cleaner purchased on November 5.
29
Paid $200 for advertising.
30
Cash dividends of $1,400 were paid to stockholders.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 4 steps with 21 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer.arrow_forwardThe following transactions occurred for Luminary Engineering: View the transactions. Journalize the transactions of Luminary Engineering. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Notes Payable; Luminary, Capital; Luminary, Withdrawals; Service Revenue; and Utilities Expense. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) July 2: Received $15,000 contribution from Bobby Luminary, owner, in exchange for capital. Date Jul. 2 Transactions Jul. 2 Accounts and Explanation Jul. 4 Jul. 5 Jul. 10 Jul. 12 Jul. 19 Jul. 21 Jul. 27 Debit Received $15,000 contribution from Bobby Luminary, owner, in exchange for capital. Paid utilities expense of $440. Purchased equipment on account, $2,600. Performed services for a client on account, $3,500. Borrowed $7,200 cash, signing a notes payable. Luminary withdrew $650 cash from the business. Purchased…arrow_forwardCreate a schedule of accounts receivable using the accounts receivable subsidiary ledger‘s.arrow_forward
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education