Question

Enter the transactions listed below in the General Journal.
January 1, 2019 or 2020 – Use January 1 as the starting date for transactions. This will give us a one-month accounting period for reports, etc.
Date
1 Night invested cash in business, $90,000.
Debit: Checking increases.
Credit: Owner’s Equity increases.

1 Paid insurance premium for six-month camping season, $9,000. (Record the insurance payment as a pre-paid asset.)

Debit: Prepaid asset of insurance
Credit: Checking as cash was reduced

2 Paid rent for lodge and campgrounds for the month of April, $40,000. Vendor: Wilderness Properties

Debit: The expense of paying the rent.
Credit: Checking – the reduction of cash

2 Received registration information from Augsburg University for $15,000 for an ice fishing camp during the third week in January.

Debit: Accounts Receivable: No money received yet
Credit: Registration Fees – record revenue earned

3 Received registration information from Bemidji State University for $20,000 for an ice fishing camp during the fourth week in January. Prepare an invoice for this sale. They are sending four coaches on the trip. Make note on the invoice of the dates of the camp in the Message on Invoice section. Record in the General Journal and then prepare an invoice.

Debit: Accounts Receivable: No money received yet
Credit: Revenue is increased with a credit Registration Fees

3 Purchased 10 fishing boats on account for $60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Vendor: Mt. Dora Watercraft A loan agreement with terms was signed.

Debit: The asset Fishing Boats is increased
Credit: The Notes Payable is increased

4 Purchased food supplies from Acme Super Market on account, $7,000. You are increasing the asset Food supplies and increasing the Liability – Accounts Payable for Acme Super Market.

Debit: Food Supplies
Credit: Accounts Payable

5 Purchased office supplies from Gordon Office Supplies on account, $500. Same process as previous transaction.

Debit: Office Supplies
Credit: Accounts Payable

6 Received registration information from University of Minnesota for an ice fishing camp during the first week in February. Make note on the invoice of the dates of the camp in the Message on Invoice section. They are sending eight coaches on the trip. Record in the General Journal and then prepare an invoice.

Debit: Accounts Receivable: No money received yet
Credit: Registration Fees Revenue is increased with a credit

5 Purchased food supplies from Acme Super Market on account, $8,200.

Debit: Food Supplies
Credit: Accounts Payable

7 Received a check from Augsburg University for $15,000 for payment of the fishing trip the third week in January. You will record the payment of the accounts receivable and the deposit to checking from cashing the checks.

Debit: Checking – Cash was received
Credit: Accounts Receivable – Cash was received, and balance reduced

8 Received a check from Bemidji State University for $20,000 for an ice fishing camp during the fourth week in January.

Debit: Checking – Cash was received
Credit: Accounts Receivable – Cash was received, and balance reduced

9 Purchased food supplies from Acme Super Market on account, $9,000.

15 Paid wages to fishing guides, $10,000. This is the expense of paying employees’ wages. Wages Expense is increased and Checking (Cash) is decreased. Wages are paid on the 15th and last day of each month. The fishing guides are salaried employees.

Debit: The expense of paying Wages
Credit: Cash as the account was reduced to pay wages for the period.

21 Paid postage, $150.
24 Purchased food supplies from Acme Super Market on account, $8,500.
30 Purchased food supplies from Acme Super Market on account, $6,000.

30 Paid Acme Super Market on account, $32,700. You are making a payment to pay down the balance of this accounts payable liability that you owe.

Debit Accounts Payable: You are reducing this debt.
Credit: Checking as you are reducing the balance of the account.

30 Paid utilities bill, $2,000. Record the expense of paying for the utilities.

30 Paid phone bill, $1,200. Record the expense of paying the phone bill.

30 Bob Night withdrew cash for personal use, $6,000. You will increase the drawing account and decrease cash.

30 Paid wages to fishing guides, $10,000.

Office supplies remaining on hand, $100.

Food supplies remaining on hand, $8,000.

Insurance expired during the month of January, $1500

Depreciationon the fishing boats for the month of January, $1000

How do you record closing journal entries for all accounts for the end of the month?

Answer 1

Date	General Journal	Debit	Credit
2019		$	$
Jan 1	Cash	90,000
	Bob Night, Capital		90,000
Jan 1	Prepaid Insurance	9,000
	Cash		9,000
Jan 2	Rent Expense	40,000
	Cash		40,000
Jan 2	Accounts Receivable	15,000
	Registration Fees		15,000
Jan 3	Accounts Receivable	20,000
	Registration Fees		20,000
Jan 3	Equipment	60,000
	Notes Payable		60,000
Jan 4	Food Supplies	7,000
	Accounts Payable		7,000
Jan 5	Office Supplies	500
	Accounts Payable		500
Jan 6	Accounts Receivable	???
	Registration Fees		???
Jan 6	Food Supplies	8,200
	Accounts Payable		8,200
Jan 7	Cash	15,000
	Accounts Receivable		15,000
Jan 8	Cash	20,000
	Accounts Receivable		20,000
Jan 9	Food Supplies	9,000
	Accounts Payable		9,000
Jan 15	Wages Expense	10,000
	Cash		10,000
Jan 21	Postage Expense	150
	Cash		150
Jan 24	Food Supplies	8,500
	Accounts Payable		8,500
Jan 30	Food Supplies	6,000
	Accounts Payable		6,000
Jan 30	Accounts Payable	32,700
	Cash		32,700
Jan 30	Utilities Expense	2,000
	Cash		2,000
Jan 30	Telephone Expense	1,200
	Cash		1,200
Jan 30	Bob Night, Withdrawals	6,000
	Cash		6,000
Jan 30	Wages Expense	10,000
	Cash		10,000
Adjusting Entries
Jan 31	Office Supplies Expense	400
	Office Supplies		400
Jan 31	Food Supplies Expense	30,700
	Food Supplies		30,700
Jan 31	Insurance Expense	1,500
	Prepaid Insurance		1,500
Jan 31	Depreciation Expense	1,000
	Accumulated Depreciation: Equipment		1,000
Closing Entries
Jan 31	Registration Fees	???
	Wages Expense		20,000
	Rent Expense		40,000
	Food Supplies Expense		30,700
	Office Supplies Expense		400
	Utilities Expense		2,000
	Telephone Expense		1,200
	Insurance Expense		1,500
	Depreciation Expense		1,000
	Bob Night, Capital		???
	To close revenue and expense accounts
Jan 31	Bob Night, Capital	6,000
	Bob Night, Withdrawals		6,000
	To close drawings account