Question

The transactions of Finkel Brothers Limited are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger (use T accounts). After all entries have been posted, you are to prepare a trial balance at September 30, 2018.

                                                               General Journal

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Date                Account Titles and Explanation                                                 Debit           Credit

2018

Sep      1       Cash...................................................................................         20,000

                            Common Shares.........................................................                            20,000

                            (Shareholders invested cash in business)

            4       Vehicles..............................................................................         40,000

                            Cash............................................................................                            15,000

                            Bank Loan Payable.....................................................                            25,000

                            (Paid cash and issued 2-year, 9% bank loan for balance)

            8       Rent Expense....................................................................           1,200

                            Cash............................................................................                              1,200

                            (Paid September rent)

          15       Prepaid Insurance..............................................................              500

                            Cash............................................................................                                 500

                            (Paid one-year liability insurance)

          18       Cash...................................................................................           3,200

                            Service Revenue........................................................                              3,200

                            (Received cash for delivery services)

          20       Salaries Expense...............................................................              750

                            Cash............................................................................                                 750

                            (Paid salaries for current period)

          25       Utilities Expense................................................................              125

                            Accounts Payable.......................................................                                 125

                            (Received a bill for September utilities)

          30       Dividends Declared............................................................              800

                            Cash............................................................................                                 800

                            (Paid dividends)

          30       Accounts Receivable.........................................................           1,450

                            Service Revenue........................................................                              1,450

                            (Billed customer for delivery service)

Answer 1

	Cash Account
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
01-Sep	Common Shares	20000		$   20,000.00
04-Sep	Vehicles		$ 15,000.00	$     5,000.00
08-Sep	Rent Expense		$   1,200.00	$     3,800.00
15-Sep	Prepaid Insurance		$       500.00	$     3,300.00
18-Sep	Service Revenue	3200		$     6,500.00
20-Sep	Salaries Expense		$       750.00	$     5,750.00
30-Sep	Dividend		$       800.00	$     4,950.00
	Accounts Receivable
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
30-Sep	Service Revenue	$   1,450.00		$     1,450.00
	Service Revenue
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
18-Sep	Cash		$   3,200.00		$   3,200.00
30-Sep	Accounts Receivable		$   1,450.00		$   4,650.00
	Common Stock
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
01-Sep	Cash		$ 20,000.00		$ 20,000.00
	Vechicles
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
04-Sep	Cash	$ 15,000.00		$   15,000.00
04-Sep	Bank loan Payable	$ 25,000.00		$   40,000.00
	Bank loan Payable
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
04-Sep	Vechicles		$ 25,000.00		$ 25,000.00
	Accounts Payable
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
25-Sep	Utilities Expense		$       125.00		$       125.00
	Rent Expense
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
08-Sep	Cash	$   1,200.00		$     1,200.00
	Prepaid Insurance	No.610
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
15-Sep	Cash	$       500.00		$         500.00
	Utilities Expenses	No.729
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
25-Sep	Accounts Payable	$       125.00		$         125.00
	Salaries Expense	No.726
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
20-Sep	Cash	$       750.00		$         750.00
	Dividend Expense	No.726
				Balance
Date	Account Title	Dr	Cr	Dr	Cr
30-Sep	Cash	$       800.00		$         800.00
	Trial Balance
	Account Head	Debit	Credit
	Cash	$   4,950.00
	Accounts Receivable	$   1,450.00
	Prepaid Insurance	$       500.00
	Vechicles	$ 40,000.00
	Accounts Payable		$       125.00
	Bank Loan Payable		$ 25,000.00
	Common Stock		$ 20,000.00
	Service Revenue		$   4,650.00
	Rent Expense	$   1,200.00
	Salaries Expense	$       750.00
	Utilities Expense	$       125.00
	Dividend	$       800.00
	Total	$ 49,775.00	$ 49,775.00