In: Accounting
Prepare Journal Entries, Trial Balance, and Income Statements
Oct 1. Graham invested $90,000 cash, a 36,000 computer system, and $18,000 of office equipment in the business
Oct 2. Paid rent in advance $9,000
Oct 3. Purchased computer supplies oncredit for $ 2,640 from Abbott Office Products.
Oct 5. Paid $4,320 cash for one yesr's premium on a property and liability insurance policy
Oct 6. Billed Capital Leasing $6,600 for installing new computer
Oct 8. Paid for the computer supplies purchased from Abbott Office Products
Oct 10. Hired Carly Smith as a part0time asistanat for $200 per day, as needed
Oct 12. Billed Capital Leasing another $2,400 for computer services rendered
Oct1 15. Received $6,600 from Capital leasing on its account
Oct 17. Paid $1,410 to repair computer equipment damaged when movng to a new office
Oct 20. Paid $3,720 for and advertisement in the local newspaper
Oct 22. Received $2,400 from Capital Leasing on its account
Oct 28. Billed Decker Company $6,450 for services
Oct 31. Paid Carly Smith for seven days work
Oct 31. Withdrew $7,200 cash from the business for personal use
Nov 1. Reimbursed graham's business automobile expense for 1,000 kilometers at $1.00 per kilometer
Nov 2. Received $9,300 cash from Elite Corporation for computer services rendered
Nov 5. Purchased $1,920 of computer supplies for cash from Abbott Office Products
Nov 8. Billed Fostek Co. $8,700 for computer services rendered
Nov 13. Notified by Alamo Engineering Co. that Echo's bid of $7,500 for an upcoming project was accepted
Nov 18. Received $3,750 from Decker Company againts the bill dated October 28
Nov 22. Donated $1,500 to the United Way in the company's name
Nove 24. Completed work fr Alamo Engineering Co. and sent a bill for $7,500
Nov 25. Sent another bill to Decker Company for the past due amount of $2,700
Nov 28. Reimbursed Graham's business expense for $1,200 kilometers at $1.00 per kilometer
Nov 30. Paid Carly Smith for 14 days work
Nov 30. Withdrew $3,600 cash from the business for personal use
GRAHAM | |||||
General Journal | |||||
Date | Journal | Amount (DR) | Amount (CR) | ||
01-Oct | Cash | $ 90,000.00 | |||
Computer System | $ 36,000.00 | ||||
Office Equipment | $ 18,000.00 | ||||
To Common Stock | $ 1,44,000.00 | ||||
(Being amount of Cash,Computer System and Office Equipment invested) | |||||
02-Oct | Prepaid Rent | $ 9,000.00 | |||
To Cash | $ 9,000.00 | ||||
(Being amount of Rent Paid in advance) | |||||
03-Oct | Computer Supplies | $ 2,640.00 | |||
To Accounts Payble | $ 2,640.00 | ||||
(Being amount of computer supplies purchased on credit from Abbott Office Products) | |||||
05-Oct | Prepaid Insurance | $ 4,320.00 | |||
To Cash | $ 4,320.00 | ||||
(Being amount of one year insurance paid ) | |||||
06-Oct | Accounts Receivable | $ 6,600.00 | |||
To Computer Service Revenue | $ 6,600.00 | ||||
(Being amount of computer revenue received from Capital Leasing) | |||||
08-Oct | Accounts Payable | $ 2,640.00 | |||
To Cash | $ 2,640.00 | ||||
(Being amount of cash paid to Abbott Office Products) | |||||
10-Oct | No Entry because hired not paid to Carly | ||||
12-Oct | Accounts Receivable | $ 2,400.00 | |||
To Computer Service Revenue | $ 2,400.00 | ||||
(Being amount billed to Capital Leasing) | |||||
15-Oct | Cash | $ 6,600.00 | |||
To Accounts Receivable | $ 6,600.00 | ||||
(Being amount received from Capital leasing) | |||||
17-Oct | Repair Expenses | $ 1,410.00 | |||
To Cash | $ 1,410.00 | ||||
(Being amount of Repair Expenses of computer repairs) | |||||
20-Oct | Advertisement Expenses | $ 3,720.00 | |||
To Cash | $ 3,720.00 | ||||
(Being amount paid for advertisement in local newspaper) | |||||
22-Oct | Cash | $ 2,400.00 | |||
To Accounts Receivable | $ 2,400.00 | ||||
(Being amount received for Capital leasing on account) | |||||
28-Oct | Accounts Receivable | $ 6,450.00 | |||
To Computer Revenue | $ 6,450.00 | ||||
(Being amount billed to Decker) | |||||
31-Oct | Wages | $ 1,400.00 | |||
To Cash | $ 1,400.00 | ||||
(Being amount paid to Carly Smith for 7 days work @$200 per day) | |||||
31-Oct | Drawings | $ 7,200.00 | |||
To Cash | $ 7,200.00 | ||||
(Being amount withdraw for personla use) | |||||
01-Nov | Automobile Expenses | $ 1,000.00 | |||
to Cash | $ 1,000.00 | ||||
(Being amount reimbursed fo automobile expenses 1000 kilometer @$1 per kilometer) | |||||
02-Nov | Cash | $ 9,300.00 | |||
To Computer Service Revenue | $ 9,300.00 | ||||
(Being amount of Computer revenue received from Elite Corporation) | |||||
05-Nov | Computer Supplies | $ 1,920.00 | |||
To Cash | $ 1,920.00 | ||||
(Being amount of Computer supplies purchased fro Abbott Office Products) | |||||
08-Nov | Accounts Receivable | $ 8,700.00 | |||
To Computer Revenue | $ 8,700.00 | ||||
(Being amount billed to Fostek Co.) | |||||
13-Nov | No Entry | ||||
18-Nov | Cash | $ 3,750.00 | |||
To Accounts Receivable | $ 3,750.00 | ||||
(Being amount received from Decker) | |||||
22-Nov | |||||
24-Nov | Accounts Receivable | $ 7,500.00 | |||
To Computer Service Revenue | $ 7,500.00 | ||||
(Being amount billed to Alamo Engineering Co.) | |||||
25-Nov | Accounts Receivable | $ 2,700.00 | |||
To Computer Service Revenue | $ 2,700.00 | ||||
(Being amount billed to Decker) | |||||
28-Oct | Automobile Expenses | $ 1,200.00 | |||
to Cash | $ 1,200.00 | ||||
(Being amount reimbursed fo automobile expenses 1200 kilometer @$1 per kilometer) | |||||
30-Nov | Wages | $ 2,800.00 | |||
To Cash | $ 2,800.00 | ||||
(Being amount paid to Carley Smith for 14 days @$200 per day) | |||||
30-Nov | Drawings | $ 3,600.00 | |||
To Cash | $ 3,600.00 | ||||
(Being amount withdraw for personal use) | |||||
Cash A/c | Balance | ||||
Date | Title | Debit | Credit | Debit | Credit |
01-Oct | Common Stock | $ 90,000.00 | $ 90,000.00 | ||
02-Oct | Prepaid Rent | $ 9,000.00 | $ 81,000.00 | ||
05-Oct | Prepaid Insurance | $ 4,320.00 | $ 76,680.00 | ||
08-Oct | Accounts Payable | $ 2,640.00 | $ 74,040.00 | ||
15-Oct | Accounts Receivable | $ 6,600.00 | $ 80,640.00 | ||
17-Oct | Repair Expenses | $ 1,410.00 | $ 79,230.00 | ||
20-Oct | Advertisement Expenses | $ 3,720.00 | $ 75,510.00 | ||
22-Oct | Accounts Receivable | $ 2,400.00 | $ 77,910.00 | ||
31-Oct | Wages Expenses | $ 1,400.00 | $ 76,510.00 | ||
31-Oct | Drawings | $ 7,200.00 | $ 69,310.00 | ||
01-Nov | Automobile Expenses | $ 1,000.00 | $ 68,310.00 | ||
02-Nov | Computer Service Revenue | $ 9,300.00 | $ 77,610.00 | ||
05-Nov | Computer Supplies | $ 1,920.00 | $ 75,690.00 | ||
18-Nov | Accounts Receivable | $ 3,750.00 | $ 79,440.00 | ||
28-Nov | Automobile Expenses | $ 1,200.00 | $ 78,240.00 | ||
30-Nov | Wages Expenses | $ 2,800.00 | $ 75,440.00 | ||
30-Nov | Drawings | $ 3,600.00 | $ 71,840.00 | ||
Common Stock | Balance | ||||
Date | Title | Debit | Credit | Debit | Credit |
01-Oct | Cash | $ 90,000.00 | $ 90,000.00 | ||
Computer Equipment | $ 36,000.00 | $ 1,26,000.00 | |||
Office Equipment | $ 18,000.00 | $ 1,44,000.00 | |||
Prepaid Rent | |||||
Date | Title | Debit | Credit | Debit | Credit |
02-Oct | Cash | $ 9,000.00 | $ 9,000.00 | ||
Prepaid Insurance | |||||
Date | Title | Debit | Credit | Debit | Credit |
05-Oct | Cash | $ 4,320.00 | $ 4,320.00 | ||
Computer Supplies | |||||
Date | Title | Debit | Credit | Debit | Credit |
03-Oct | Accounts Payable | $ 2,640.00 | $ 2,640.00 | ||
05-Nov | Cash | $ 1,920.00 | $ 4,560.00 | ||
Accounts Payable | |||||
Date | Title | Debit | Credit | Debit | Credit |
03-Oct | Computer Supplies | $ 2,640.00 | $ - | ||
08-Oct | Cash | $ 2,640.00 | |||
Accounts Receivable | |||||
Date | Title | Debit | Credit | Debit | Credit |
06-Oct | Computer Service Revenue | $ 6,600.00 | $ 6,600.00 | ||
12-Oct | Computer Service Revenue | $ 2,400.00 | $ 9,000.00 | ||
15-Oct | Cash | $ 6,600.00 | $ 2,400.00 | ||
22-Oct | Cash | $ 2,400.00 | $ - | ||
28-Oct | Computer Service Revenue | $ 6,450.00 | $ 6,450.00 | ||
08-Nov | Computer Service Revenue | $ 8,700.00 | $ 15,150.00 | ||
18-Nov | Cash | $ 3,750.00 | $ 11,400.00 | ||
24-Nov | Computer Service Revenue | $ 7,500.00 | $ 18,900.00 | ||
25-Nov | Computer Service Revenue | $ 2,700.00 | $ 21,600.00 | ||
Advertisement Expenses | |||||
Date | Title | Debit | Credit | Debit | Credit |
20-Oct | Cash | $ 3,720.00 | $ 3,720.00 | ||
Repairs Expenses | |||||
Date | Title | Debit | Credit | Debit | Credit |
17-Oct | Cash | $ 1,410.00 | $ 1,410.00 | ||
$ - | |||||
Automobile Expenses | |||||
Date | Title | Debit | Credit | Debit | Credit |
01-Nov | Cash | $ 1,000.00 | $ 1,000.00 | ||
28-Nov | Cash | $ 1,200.00 | $ 2,200.00 | ||
Computer Service Revenue | |||||
Date | Title | Debit | Credit | Debit | Credit |
06-Oct | Accounts Receivable | $ 6,600.00 | $ 6,600.00 | ||
12-Oct | Accounts Receivable | $ 2,400.00 | $ 9,000.00 | ||
28-Oct | Accounts Receivable | $ 6,450.00 | $ 15,450.00 | ||
02-Nov | Cash | $ 9,300.00 | $ 24,750.00 | ||
08-Nov | Accounts Receivable | $ 8,700.00 | $ 33,450.00 | ||
24-Nov | Accounts Receivable | $ 7,500.00 | $ 40,950.00 | ||
25-Nov | Accounts Receivable | $ 2,700.00 | $ 43,650.00 | ||
Wages Expenses | |||||
Date | Title | Debit | Credit | Debit | Credit |
31-Oct | Cash | $ 1,400.00 | $ 1,400.00 | ||
28-Nov | Cash | $ 2,800.00 | $ 4,200.00 | ||
Drawings | |||||
Date | Title | Debit | Credit | Debit | Credit |
31-Oct | Cash | $ 7,200.00 | $ 7,200.00 | ||
30-Nov | Cash | $ 3,600.00 | $ 10,800.00 | ||
Computer Equipment | |||||
Date | Title | Debit | Credit | Debit | Credit |
02-Oct | Common Stock | $ 36,000.00 | $ 36,000.00 | ||
Office Equipment | |||||
Date | Title | Debit | Credit | Debit | Credit |
02-Oct | Common Stock | $ 18,000.00 | $ 18,000.00 | ||