Question

Question 1 : Use provided information to prepare [A] General Journal. [B] T-Account,
[C] Prepare Adjusted Trial Balance

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[A] Prepare General Journal

1. Company provided services $3,000 in cash
2. Owner invested $1,000 in cash
3. Company purchased office supplies $650 on account
4. Company paid rent expense $5,000, Salary salaries expenses $1,500, Insurance Expenses $450
5. Company sold inventory $600 on account

B] Prepare T-Account and Normal balance from the Table above

c)

                                                UNADJUSTED TRIAL BALANCE

	Debit	Credit
Cash
Account Receivable
Inventory
Office Supplies
Account Payable
Owner investment
Service
Rent expenses
Salary expenses
Insurance expenses
TOTAL

Answer 1

Rules -

1- When asset increases, it is debited but when decreases, it is credited.

2- When liabilities increases, it is credited but when decreases, it is debited.

3- When Expenses occur , it is debited.

4- When revenue receives, it is credited.

Answer B -

T- Accounts

DR.   Cash   CR.

(1)     $ 3,000	$ 1,000     (2)
	$ 5,000   (4)
	$ 1,500   (5)
	$ 450     (6)
	Balance $ 4,950

  DR. Investment   CR.

(2)   $ 1,000
Balance $ 1,000

DR.   Service Revenue   CR.

	$ 3,000.     (1)
	$ 3,000 Balance

  

DR. Office Supplies   CR.

(3)    $ 650
Balance $ 650

DR.   Rent Expense   CR.

(4) $ 5,000
Balance $ 5,000

  

DR.   Accounts Payable   CR.

	$ 650     (3)
	$ 650. Balance

DR.   Inventory   CR.

	$ 600   (7)
	Balance$ 600

   

DR.  Insurance Expense   CR.

(6) 450
Balance $ 450

DR.  Salaries Expense   CR.

(5)   $ 1,500
Balance $ 1,500

   

DR.  Accounts Receivable  CR.

(7)   $ 600
Balance $ 600

  

Answer C -

Unadjusted Trial Balance

Account Title	Debit	Credit
Cash		4,950
Owner Investment	1,000
Accounts Receivable	600
Rent Expense	5,000
Office Supplies	650
Accounts Payable		650
Service Revenue		3,000
Insurance Expense	450
Salaries Expense	1,500
Inventory		600
Total	9,200	9,200

Answer A -

General Journal

Date	Particulars	Debit	Credit
1-	Cash	3,000
	Service Revenue		3,000
	( Being service provided)
2-	Investment	1,000
	Cash		1,000
	(Being cash Invested )
3-	Office Supplies	650
	Accounts Payable		650
	(Being Office supplies purchased )
4-	Rent	5,000
	Cash		5,000
	(Being rent paid )
5-	Salaries	1,500
	Cash		1,500
	(Being salary paid )
6-	Insurance Expense	450
	Cash		450
	(Being Insurance paid )
7-	Accounts Receivable	600
	Inventory		600
	(Being Inventory sold )
	Total	12,200	12,200