Question

6. Choco provide trucking services. Using accounts given below,

     1) Make a journal entry for each of the following transactions. Do not need to provide explanation for each.

2) Post journal entry to T-accounts.

     3) Prepare trial balance for the month of September.

Accounts name: Cash, Accounts Receivable, Prepaid Rent, Office Supplies, Truck, Accounts Payable, Common Stock, Service Revenue, Gasoline Expense, Dividends.

1. 9/1: The stockholders contributed cash of $40,000 and a truck worth $48,000 into the business in exchange for common stock total of $88,000.

b. 9/2: Paid two months' rent in advance in cash, $2,400.

c. 9/12: Performed the trucking service on account of $6,400.

d. 9/20: Received payment of $2,000 on the trucking service performed on 9/12 on account.

e. 9/21: Purchased office supplies on account, $120.

f. 9/22: Purchased gas on account, $200.

g. 9/23: Performed the trucking service and received cash of $1,200.

h. 9/24: Paid $100 cash for 9/21 office supplies purchased on account.

i. 9/30: Paid cash dividends to shareholders total of $800.

Answer 1

1)	Journal Entries
	Date	Particulars			Debit	Credit
	01-Sep	Cash			$ 40,000.00
		Truck			$ 48,000.00
		To Common Stock				$ 88,000.00
	02-Sep	Prepaid Rent			$   2,400.00
		To Cash				$   2,400.00
	12-Sep	Accounts Receivable			$   6,400.00
		To Service Revenue				$   6,400.00
	20-Sep	Cash			$   2,000.00
		To Accounts Receivable				$   2,000.00
	21-Sep	Office Supplies			$      120.00
		To Accounts Payable				$      120.00
	22-Sep	Gasoline Expense			$      200.00
		To Accounts Payable				$      200.00
	23-Sep	Cash			$   1,200.00
		To Service Revenue				$   1,200.00
	24-Sep	Accounts Payable			$      100.00
		To Cash				$      100.00
	30-Sep	Dividends			$      800.00
		To Cash				$      800.00

3)	Trial Balance
	Particulars			Debit	Credit
	Cash			$ 39,900.00
	Accounts Receivable			$   4,400.00
	Prepaid Rent			$   2,400.00
	Office Supplies			$      120.00
	Truck			$ 48,000.00
	Accounts Payable				$      220.00
	Common Stock				$ 88,000.00
	Dividends			$      800.00
	Service Revenue				$   7,600.00
	Gasoline Expense			$      200.00
	Total			$95,820.00	$95,820.00