Question

Part 1: Record the following transactions for Classic Canine Cuts for the month of December in the General Journal.

Transaction Date Description
1 12/1 Issued 100,000 shares of common stock for $100,000.
2 12/2
A retail space is rented. Paid for one year of rent in advance totaling $24,000. (rent is $2,000 per month)
3 12/4 Purchased equipment for the business totaling $36,000.
4 12/5 Purchased $1,500 of supplies on account.
5 12/7 Provided services to customers for cash totaling $5,000.
6 12/9
Purchased an ad in the local newspaper to run during December for $400.
7 12/12
Customers purchased $1,000 of gift certificates for services to be provided in the future (pre-paid for future services).
8 12/15
Paid employee salaries for the first half of December totaling $1,200.
9 12/17 Paid $1,000 for the supplies that were purchased on December 5th.
10 12/20 Provided $2,500 of services to customers on account.
11 12/25 Paid a cash dividend of $800 to the shareholders.
12 12/30 Received $1,500 on account for services provided on 12/20.

Part 2: Post all of the transactions for the month of December from the General Journal to the General Ledger

General Journal – Adjusting Entries Part 4

Ref # Date Account Debit Credit
A 1
  
  
A 2
  
  
A 3
  
  
A. 4
  
  
A. 5
  
  

Answer 1

Part 1. Recording the transactions in the General Journal.
Date	Account Title	Dr.	Cr.
Dec. 1	Cash	$   100,000
	Common Stock		$   100,000
	To issue common stock
Dec. 2	Prepaid Rent	$     24,000
	Cash		$    24,000
	being rent paid in advance
Dec. 4	Equipment	$     36,000
	Cash		$    36,000
	Being equipment pruchased
Dec. 5	Supplies	$      1,500
	Account Payable		$      1,500
	Being supplies purchased
Dec. 7	Cash	$      5,000
	Service Revenue		$      5,000
	Being Service provided
Dec. 9	Advertisement Expense	$         400
	Cash		$         400
	Being adv. Expense paid
Dec.1 2	Cash	$      1,000
	Unearned Revenue		$      1,000
	Being Gift Certificates sold in adv.
Dec. 15	Salaries Expense	$      1,200
	Cash		$      1,200
	Being Salaries paid
Dec. 17	Account Payable	$      1,000
	Cash		$      1,000
	Being paid for supplies
Dec. 20	Account Receivable	$      2,500
	Service Revenue		$      2,500
	Being service provided on account
Dec. 25	Dividend	$         800
	Cash		$         800
	Being Dividend paid
Dec. 30	Cash	$      1,500
	Account Receivable		$      1,500
	Cash received from AR

Part 2: General Journal and Posting Adjusting Entry
Common Stock
Date	Account Title	Dr.	Cr.
Dec. 1	Cash		$    100,000
Dec. 31	End. Bal.		$ 100,000
Cash
Dec. 1	Common Stock	$    100,000
Dec. 2	Prepaid Rent		$      24,000
Dec. 4	Equipment		$      36,000
Dec. 7	Service Revenue	$        5,000
Dec. 9	Advertising Expense		$          400
Dec. 12	Unearned Revenue	$        1,000
Dec. 15	Salaries Expense		$       1,200
Dec. 17	Account Payable		$       1,000
Dec. 25	Dividend		$          800
Dec. 30	Account Receivable	$        1,500
Dec. 31	End. Bal.	$    44,100
Prepaid Rent
Dec. 2	Cash	$      24,000
Dec. 31	Rent Expense		$       2,000
Dec. 31	End. Bal.	$    22,000
Rent Expense
Dec. 31	Prepaid Rent	$        2,000
Dec. 31	End. Bal.	$      2,000
Equipment
Dec. 4	Cash	$      36,000
Dec. 31	End. Bal.	$    36,000
Supplies
Dec. 5	Account Payable	$        1,500
Dec. 31	End. Bal.	$      1,500
Account Payable
Dec. 5	Supplies		$       1,500
Dec. 17	Cash	$        1,000
Dec. 31	End. Bal.		$         500
Service Revenue
Dec. 7	Cash		$       5,000
Dec. 20	Account Receivable		$       2,500
Dec. 31	End. Bal.		$      7,500
Advertisement Expense
Dec. 9	Cash	$          400
Dec. 31	End. Bal.	$         400
Unearned Revenue
Dec. 12	Cash		$       1,000
Dec. 31	End. Bal.		$      1,000
Salaries Expense
Dec. 15	Cash	$        1,200
Dec. 31	End. Bal.	$    1,200
Account Receivable
Dec. 20	Service Revenue	$        2,500
Dec. 30	Cash		$          1,500
Dec. 31	End. Bal.	$    1,000
Dividend
Dec. 25	Cash	$          800
Dec. 31	End. Bal.	$         800

Total of Trial Balance will be $109,000.