Question

List of Transactions:

June 1- Peck Farms contributed $100,000 to the business in exchange for common stock

June 2- Paid monthly rent of $1,200 prepaid rent for the next three months $3,600

June 2- Paid utilities $500

June 2- Paid cash for 12month insurance policy starting on July 1^st $8,000

June 3- Paid cash for land $15,000

June 3- Purchased office supplies on account $1,000

June 3- Paid for advertising $900

June 3- Purchased furniture on account $10,000

June 4- Purchased inventory $15,000; cash

June 5- Grand opening made $8,000 in sales

June 5- Paid $6,000 on account

June 7- Catered a wedding, received $400 cash

June 9- $3,000 sales; cash

June 10- Catered event, billed for $600

June 14- Paid Employees salaries $1,200

June 15- Catered an event, billed company $1,500

June 16- $2,500 sales; cash

June 17- $2,000 sales; cash

June 18- $3,000 sales; cash

June 19- Catered event, received $400 cash

June 20- $5,400 sales; cash

June 21- $5,000 sales; cash

June 22- Purchased $15,000 of inventory on account

June 23- Purchased building for $180,000. Paid $80,000 cash and signed a note payable to the bank for the remaining balance.

June 24- Paid $50,000 on note payable.

June 25- Received $8,000 to cater conference on July 17^th

June 26- $8,000 sales; cash

June 27- Paid remainder on note payable

June 28- Received utility bill of $500 for the following month

June 29- Paid Employees salaries $1,200

June 30- Cash dividends paid to stockholders $8,000

From the list of transactions, create the following: a general journal, general ledger, and trial balance.

Answer 1

Journal entries for teh month of June

DATE PARTICULARS Dr.($) Cr.($)

1/6    cash 100000

common stock 100000

(being contribution to capital by Peck Farm)

2/6 Prepaid rent 3600

cash 3600

2/6 Utilities 500

cash 500

2/6 Prepaid insurance    8000

cash 8000

3/6 Land    15000

   cash     15000

3/6 Office supplies    1000

cash 1000

3/6 Advertisement expense 900

cash 900

3/6 Furniture    10000

cash 10000

4/6 Purchase 15000

   cash    15000

5/6 Cash    8000

  sales    8000

5/6 Accounts payable    6000

   cash    6000

7/6 Cash    400

catering service 400

9/6 Cash   3000

Sales    3000

10/6 Accounts payable        600

   Catering service 600

14/6 Salaries    1200

cash    1200

15/6 Accounts receivable 1500

   catering service    1500

16/6 Cash    2500

sales    2500

17/6 Cash    2000

   sales 2000

18/6 Cash 3000

   sales    3000

19/6 Cash    400

   Catering service    400

20/6 Cash       5400

   sales    5400

21/6 Cash    5000

sales    5000

22/6 Purchase 15000

Accounts payable 15000

23/6 Building    180000

   cash 80000

   notes payable 100000

24/6 Notes payable    50000

   cash    50000

26/6 Cash   8000

   sales    8000

27/6 Notes payable 50000

   cash    50000

28/6 Utilities    500

   accounts payable 500

29/6 Salaries 1200

cash    1200

30/6 Dividend paid 8000

cash    8000

30/6 Cash 101700

Loan    101700

(based on assumtion that to meet cash shortage loan has been taken on different dates)

General Ledger

Cash account

date particulars Dr. ($) Cr.($)

1/6 common stock 100000 -

2/6 prepaid rent -   3600

2/6 utilities - 500

2/6 Prepaid insurance -   8000

3/6 Land    - 15000

3/6 Advertisement - 900

4/6 purchase 15000 -

5/6 sales 8000 -

5/6 accounts payable    - 6000

7/6 catering service    - 400

9/6 sales 3000 -

14/6 salaries    - 1200

16/6 sales    2500 -

17/6 sales    2000 -

18/6 sales 3000 -

19/6 catering service    - 400

20/6 sales   5400 -

21/6 sales 5000 -

23/6 building - 80000

24/6 notes payable - 50000

26/6 sales 8000 -

27/6 notes payable - 50000

29/6 salaries 1200 -

30/6 dividend paid - 8000

30/6 Loan (assumed)   101700 -

TOTAL    239400 239400

Utilities account

2/6 cash 500 -

28/6 accounts payable 500 -

Total 1000

Accounts payable

3/6 office supplies - 1000

3/6 furniture - 10000

5/6 cash 6000 -

22/6 purchase - 15000

28/6 utilities - 500

balance c/d 20500 -

Total 26500 26500

Purchase

4/6 cash 15000 -

22/6 accounts payable 15000 -

balance c/d - 30000

Total 30000 30000

Sales account

5/6 cash - 8000

9/6 cash - 3000

10/6 cash - 2500

17/6 cash - 2000

18/6 cash - 3000

20/6 cash - 5400

21/6 cash - 5000

26/6 cash - 8000

balance c/d 36900 -

Total 36900 36900

Catering service account

7/6 cash - 400

10/6 accounts receivable - 600

15/6 accounts receivable - 1500

19/6 cash - 400

balance c/d 2900 -

Total 2900 2900

Accounts receivable

10/6 catering service 600 -

15/6 catering service 1500 -

balance c/d - 2100

Total 2100 2100

Notes payable

23/6 building - 100000

24/6 cash 50000 -

27/6 cash 50000 -

Total 100000 100000

Note: in general ledger only major accounts have been prepared

TRIAL BALANCE

PARTICULARS Dr($) Cr($)

common stock - 100000

prepaid rent 3600 -

prepaid insurance 8000 -

Land 15000 -

office supplies 1000 -

Advertisement 900 -

furniture 10000 -

purchase 30000 -

building 180000 -

dividend paid 8000 -

cash 0000 -

Loan (assumed)    - 101700

utilities 1000 -

accounts payable - 20500

sales - 36900

catering service - 2900

accounts receivable 2100 -

salaries 2400 -

TOTAL 262000 262000