In: Accounting
I.
Journalize the following transactions and then post to the T accounts using the following: Chart of Accounts: [Note: Not all the accounts need to be used]
101 – Cash & Cash Equivalents
102 – Accounts Receivable
103 – Notes Receivable
104 – Interest Receivable
105 – Investments - Trading
106 – Prepaid Office Supplies
107 – Prepaid Insurance
108 – Prepaid Rent
109 – Office Equipment
110 – Long Term Investments
120 – Vehicles
121 – Building
122 – Land
201 – Accounts Payable
202 – Unearned Income
203 – Salaries Payable
209 – Notes Payable [Short term]
210 – Portion of LT Debt Due in One Year
220 – Notes Payable [Long term]
221 – Bank Loan [LT]
222 – Bonds Payable
301 – Capital Account
302 - Withdrawals
401 – Design Service Revenue
402 – Misc. Revenue
501 – Salaries Expense
502 – Selling Expense
503 – Insurance Expense
504 – Rent Expense
505 – Utilities Expense
506 – Internet, Telephone, Cable Expense
507 – Charitable Contribution Expense
508 – Advertising Expense
509 – Equipment Rental Expense
510 – Depreciation Expense
511 – Vehicle Expense (gas, oil, repairs)
512 – Misc. Expense
01 Sept: A,B&C Designers was established on 01 Sept. The owner, Ndege invested $85,000 in cash.
01 Sept: Ndege invested office equipment valued at $9,000 and a vehicle valued at $37,000.
02 Sept: Ndege purchased land valued at $15,000 and a building valued at $60,000. Those purchases were made partly with $20,000 cash and a long-term note payable for $55,000. (debit and credit these 4 accounts exactly for the amounts listed.)
08 Sept: Ndege purchased $3,000 of additional office equipment with a short-term note payable.
12 Sept: Ndege paid $2,500 cash salary to an employee.
13 Sept: Ndege paid $1,675 cash for this month’s utilities.
15 Sept: Ndege paid $570 on the $3,000 of additional equipment she had purchased on account on 08 Sept.
17 Sept: Ndege performed $7,500 of design services and received $5,000 in cash and the rest will be paid later.
19 Sept: Ndege received $9,000 for services to be rendered next month.
20 Sept: Ndege received $500 in cash as partial payment on the amount owed to her for services rendered on 17 Sept.
25 Sept: Ndege performed designed services for $3,500 and received a 90-day note from the customer instead of cash.
29 Sept: Ndege withdrew $7,000 for personal use.
30 Sept: Ndege pays $7,000 for advertising with cash.
30 Sept: Ndege pays $1,000 in cash for gas and oil and minor repairs on her vehicle.
1. Journals:
2. Posting to the T-Accounts:
Notes: For the journal dated Sept 2, the expressions 'Misc assets' and 'Misc liabilities' have been used while posting to T-Accounts as it would not be possible to attribute each specific debit to a specific credit as in the case of posting a simple compound/combined entry.