Question

Prepare the journal entries (omit explanations) for all transactions from January 01, 2016 through June 30, 2016, post all journal entries to the general ledger, and prepare an Unadjusted Trial Balance for the six months ending June 30, 2016.

1/1       The owner of the business contributed $10,000 cash and a truck worth $16,000 to the business in exchange for 26,000 shares of $1par common stock. This is the first ever transaction for the business. Use perpetual inventory.

1/31     Borrowed $50,000 on a note payable from the bank.

1/31     Paid January rent, $500

2/01     Purchased equipment for $10,000 cash.

2/15     Purchased 100 bags of lawn fertilizer for $2.00 per bag on account (this lawn fertilizer will be sold to customers to apply themselves)

2/01     Paid February rent, $500

3/01     Prepaid, March – December rent at $500 per month

3/01     Purchased 100 bags of weed preventive fertilizer for $8 per bag on account (this fertilizer will be sold to customers to apply themselves)

3/01     Paid amount owed on lawn fertilizer from 2/15 transaction

3/15     Sold 20 bags of weed preventive fertilizer for $15 per bag (cash)

3/15     Received $500 cash from customers for spring lawn services performed

3/15     Performed spring lawn service to customers on account $750

4/01     Collected $500 from customers on account from 3/15 transaction

4/14     Collected $250 from customers on account from 3/15 transaction

4/15     Sold 25 bags of weed preventive fertilizer for $15 per bag (cash)

4/15     Sold 15 bags of lawn fertilizer for $6 per bag (cash)

4/15     Paid for advertising campaign, $5,000 cash

5/01     Received payment for summer services in advance from 20 customers

            5 months (May – September) at $1000 each for a total of $100,000

5/31     Received payment for May’s lawn services provided from 5 customers, $5,500

5/31     Performed May lawn service for 5 customers on account to be received by 6/15, $5,500

5/31     Paid fuel expense of $1,000 for May

6/05     Paid wages to employees for May, $8000

6/15     Received payment from May’s credit customers, $5,500

6/15     Sold 20 bags of lawn fertilizer for $6 per bag (cash)

6/30     Received payment for June’s lawn service from 4 customers, $4,400

6/30     Performed June lawn service for 5 customers on account to be received by 7/15, $5,500

6/30     Purchased supplies on account, $1,000

6/30     Paid semi-annual payment on note from bank, $4,000 principal plus $2,000 interest expense for a total payment of $6,000

6/30     Paid fuel expense of $1,000 for May

Answer 1

1/1 Cash Dr. 10,000

Truck Dr. 16,000

To Capital 16,000

1/31 Cash Dr. 50,000

To Note Payable 50,000

1/31 Rent Dr. 500

To Cash 500

2/01 Equipment Dr. 10,000

To Cash 10,000

2/15 Purcahse Dr. 200

To Creditor 200

2/01 Rent Dr. 500

To Cash 500

3/01 Rent Dr. 500

Prepaid Rent Dr. 4500

  To Cash 5,000

3/01 Purchase A/c Dr. 800

To Creditor 800

3/01 Creditor Dr. 200

To CAsh 200

3/15 Cash Dr. 300

To Sales 300

3/15 Cash Dr. 500

To Services 300

4/01 Debtor Dr. 750

To Services 750

4/01 Rent Dr. 500

To Prepaid Rent 500

4/01 Cash Dr. 500

To Debtor 500

4/14 Cash Dr. 250

To Debtor 250

4/15 Cash Dr. 375

To Sales 375

4/15 Cash Dr. 90

To Sales 90

5/01 Rent Dr. 500

To Prepaid Rent 500

5/01 Cash Dr. 100,000

To Services 20,000

To Adv. from Customer 80,000

5/31 Cash Dr. 5,500

To Services 5,500

5/31 Debtor Dr. 5,500

To Services 5,500

5/31 Fuel Expense Dr. 1,000

To Cash 1,000

1/06 Rent Dr. 500

To Prepaid REnt 500

1/06 Advance From Customer Dr. 20,000

To Services 20,000

6/05 Wages Dr. 8,000

To Cash 8,000

6/15 Cash Dr. 5,500

To Debtor 5,500

6/30 Cash Dr. 4,400

To Services 4,400

6/30 Debtor Dr. 5,500

To Services 5,500

6/30 Purchase Dr. 1,000

To Creditor 1,000

6/30 Note Payable Dr. 4,000

Interest Expn Dr. 2,000

To CAsh 6,000

6/30 Fuel Expense Dr. 1000

To CAsh 1000