Question

In: Accounting

HHH company was opened on January 1, 2020. The following selected events and transactions occurred during...

HHH company was opened on January 1, 2020. The following selected events and transactions occurred during January:

Jan. 1 Invested €60,000 cash in the business in exchange for ordinary shares.

3 Purchased Land and equipment for €38,000 cash. The price consists of land €23,000, and equipment €15,000. (Make one compound entry.)

5 Paid for advertising expenses of €1,600.

6 Paid €2,400 for a one-year insurance policy.

10 Purchased equipment for €1,050 from Parton Company payable in 30 days.

18 Received from clients €340 of fees earned.

19 Sold 100 coupon books for €18 each.

25 Declared and paid an €800 cash dividend.

30 Paid salaries of €250.

30 Paid Parton Company in full.

31 Received €200 cash for fees earned.

Instructions

1. Journalize the March transactions.

2. Posting to Ledger

3. Prepare a trial balance for January 31, 2020

Solutions

Expert Solution

Journal Entries :

Jan 1 :. Cash A/c. - dr 60000€

Ordinary share capital A/c 60000€

Jan 3:. Land A/c. -Dr. 23000€

Equipment A/c -Dr. 15000€

To Cash A/c. 38000€

Jan 5: Advertising A/c -Dr. 1600€

To Cash A/c. 1600€

Jan 6:. Insurance A/c -Dr. 2400€

To CAsh A/c. 2400€

Jan 10:. Equipment A/c -Dr. 1050€

To parton company A/c. 1050€

Jan 18. Cash A/c -Dr. 340€

To fee earned A/c. 340€

Jan 19:. Cash A/c -Dr. 1800€

To coupon books A/c. 1800€

Jan 25:. Dividend A/c - dr. 800€

To Cash A/c. 800€

Jan 30 :. Parton company A/c -Dr. 1050€

To Cash A/c. 1050€

Salary A/c -Dr. 250€

To Cash A/c. 250€

Jan 31:. Cash A/c -Dr. 200€

To fee A/c. 200€

Ledgers :

Amt(dr) Cash A/c. Amt (cr)

To ordinary By Land. 23000€

Share cap. 60000€. By Equip. 15000€

Fee earned. 340€. By Advertise. 1600€

Coupon books. 1800€. By insurance. 2400€

Fee earned. 200€. By Dividend. 800€

By salaries. 250€

By equipment 1050€

By bal b/d 18240€

Total. 62340€. 62340€

Land

To Cash A/c. 23000€. By bal b/d. 23000€

Total. 23000€. Total. 23000€

Equipment

To Cash A/c. 16050€. By bal b/d. 16050€

Trail Balance

Particulars. Dr. Cr

Cash. 18240€

Ordinary shares. 60000€

Land. 23000€

Equipment. 16050€

Advertisement. 1600€

Insurance. 2400€

Income. 540€

Sale 1800€

Dividend. 800€

Salaries. 250€

Total. 62340€. 62340€

ekkarill92 answered 1 year ago

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