In: Accounting
Below is the post-closing trial balance of Gracie Consultancy Services as at 30 June 2019:
Debit $ |
Credit $ |
|
Cash at bank |
38250 |
|
Accounts receivable |
8250 |
|
Equipment |
40500 |
|
Accumulated depreciation - Equipment |
675 |
|
Accounts payable |
14250 |
|
Wages payable |
4500 |
|
Revenue received in advance |
2625 |
|
Gracie, Capital |
|
64950 |
87000 |
87000 |
The following transactions occurred during the month July 2019.
July |
1 |
Paid employee salaries, $4500 for June. Gracie pays her employees’ accrued salaries on the first day of each calendar month. |
8 |
Invoiced customers for consultancy services performed, $13100. |
|
14 |
Performed $1125 of services for customers who paid in advance in June for consultancy services to be performed in July. |
|
15 |
Paid $8100 for 4 months office building rent. |
|
25 |
Gracie redrew capital of $1800. |
|
31 |
Purchased office supplies on account for $1350. |
Required
a) Journalise the transactions, including narrations.
b) Prepare an unadjusted trial balance as at 31 July 2019
Journal entry | ||||||
S.no. | Accounts title and explanations | Debit $ | Credit $ | |||
a. | Wages payable | 4500 | ||||
Cash account | 4500 | |||||
(for wages paid) | ||||||
b. | Accounts receivable | 13100 | ||||
Service revenue | 13100 | |||||
(For services revenue recognized) | ||||||
c. | Revenue received in advance | 1125 | ||||
Service revenue | 1125 | |||||
(for revenue recognized) | ||||||
d. | Prepaid rent account | 8100 | ||||
Cash account | 8100 | |||||
(for rent paid in advance) | ||||||
e. | Gracie Withdrawals | 1800 | ||||
Cash account | 1800 | |||||
(for drawings made) | ||||||
f. | Office supplies | 1350 | ||||
Accounts payable | 1350 | |||||
(for supplies purchased) | ||||||
Trial Balance | ||||||
Debit $ | Credit $ | |||||
Cash (38250-4500-8100-1800) | 23850 | |||||
Accounts receivable (8250+13100) | 21350 | |||||
Prepaid rent | 8100 | |||||
Office supplies | 1350 | |||||
Equipment | 40500 | |||||
Acc. Dep | 675 | |||||
Accounts payable (14250+1350) | 15600 | |||||
Revenue received in advance (2625-1125) | 1500 | |||||
Gracie Capital | 64950 | |||||
Gracie withdrawals | 1800 | |||||
Service revenue (13100+1125) | 14225 | |||||
TOTAL | 96950 | 96950 | ||||