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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Journalizing transactions, posting to T-accounts, and preparing a trial balance

Consider the following transactional data for the first month of operations for Crystal Clear Cleaning.

Requirements

  1. 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.
  2. Open a T-account for each account.
  3. Post the journal entries to the T-accounts, and calculate account balances.
  4. Prepare a trial balance as of November 30, 2018.
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.
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.
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