Question

E3-14B Here is the ledger for Camphor Co.

Journalize transactions from T accounts and prepare a trial balance. (LO 3, 5), AP Cash					Common Stock
Oct. 1	15,000	Oct.   4	400			Oct.   1	15,000
10	980	12	1,500			25	2,000
10	8,000	15	250
20	700	30	300		Dividends
25	2,000	31	500		Oct.    30     300

Accounts Receivable					Service Revenue
Oct. 6	800	Oct.         20	700			Oct.   6	800
20	920					10	980
						20	920
Supplies					Salaries and Wages Expense
Oct. 4	400	Oct.         31	180		Oct.    31     500
Equipment					Supplies Expense
Oct. 3	3,000				Oct.    31     180
Notes Payable					Rent Expense
		Oct.         10	8,000		Oct.    15     250
Accounts Payable
Oct. 12	1,500	Oct.   3	3,000

Instructions

(a) Reproduce the journal entries for only the transactions that occurred on October 1, 10, and 20, and provide explanations for each.

(b) Prepare a trial balance at October 31, 2014. (Hint: Compute ending balances of T accounts first.)

Answer 1

Oct-01	Cash	15000
	Common stock		15000
	Being common stock issued for cash
Oct-10	Cash	8000
	Notes payable		8000
	Being notes payable issued for cash
Oct-10	Cash	980
	Service revenue		980
	Being cash received for services incurred
Oct-20	Accounts receivable	920
	Service revenue		920
	Being service incurred on account
Oct-20	Cash	700
	Accounts receivable		700
	(being cash received from accounts )
	Trial balance
	Cash	23730
	Accounts receivable	1020
	Supplies	220
	Equipment	3000
	Notes payable		8000
	Accounts payable		1500
	Common stock		17000
	Dividend	300
	Service revenue		2700
	Salaries and wages expense	500
	Supplies expense	180
	Rent expense	250
	Total	29200	29200