Question

In: Accounting

I. Journalize the following transactions and then post to the T accounts using the following: Chart...

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.

Solutions

Expert Solution

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.


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