In: Accounting
From the following transactions as well as add't data, please complete the entire accounting cycle for Parker's Plowing (using the chart of accounts below) for 2018. (Journal Entries)
Jan. 1 Parker invested $10,000 cash and $12,000 worth of snow equipment into the plowing company.
Jan. 1 Paid rent for six months in advance for garage space, $6000
Jan. 6 Purchased snow supplies for $800 casj/
Jan. 8 Collected $14,000 from plowing local shopping centers.
Jan. 12 Parker muroney withdrew $4000 from the business for his own personal use.
Jan. 20 Plowed Alton Co. parking lots, payment not to be received until May, $1, 500.
Jan. 26 Paid salaries to employees, $1900.
Jan. 28 Paid Lumen Corp. one-half amount owed for office equipment
Jan. 29 Advertising bill received from Washington Co. but will not be paid until May, $700
Jan. 30 Paid telephone bill, $130
Adjustent Data
a. Snow supplies on hand, $700
b. Rent expired, $1000
c. Depreciation on office equipent, $210: (12,600/5 yr = $2,520/12 mo. = $210).
d. Depreciation on snow equipment, $200: ($12,000/5 yr = $2,400/12 mo. = $200).
e. Accrued salaries, $380
Chart of accounts
Assets
111 Cash
112 Accounts Receivable
114 Prepaid Rent
115 Snow Supplies
121 Office Equipment
122 Accumulated Depreciation, Office Equipment
123 Snow Equipment
124 Accumulated Depreciation, Snow Equipment
Liabilities
211 Accounts Payable
212 Salaries Payable
Owners Equity
311 Parker Muroney, Capital
312 Parker Muroney, Withdrawls
313 Income Summary
Revenue
411 Plowing Fees
Expenses
511 Salary Expense
512 Advertising Expense
513 Telephone Expense
514 Rent Expense
515 Snow Supplies Expense
516 Depreciation Expense, Office Equipment
517 Depreciation Expense, Snow Equipment
Journal entries:
Date |
Account titles and explanations |
Debit ($) |
Credit ($) |
Jan-01 |
Prepaid rent |
6,000.00 |
|
Cash |
6,000.00 |
||
(Being advance rent paid for garbage space) |
|||
Jan-06 |
Snow supplies |
800.00 |
|
Cash |
800.00 |
||
(Being supplies purchased) |
|||
Jan-08 |
Cash |
14,000.00 |
|
Plowing fees |
14,000.00 |
||
(Being plowing fees collected) |
|||
Jan-12 |
Drawings |
4,000.00 |
|
Cash |
4,000.00 |
||
(Being cash withdrawn for personal use) |
|||
Jan-20 |
Accounts receivable |
1,500.00 |
|
Plowing fees |
1,500.00 |
||
(Being plwoing fees receivable) |
|||
Jan-26 |
Salaries |
1,900.00 |
|
Cash |
1,900.00 |
||
(Being salaries paid) |
|||
Jan-28 |
Accounts payable (12000 x 1/2) |
6,000.00 |
|
Cash |
6,000.00 |
||
(Being the half due amount paid for office equipment) |
|||
Jan-29 |
Advertising expenses |
700.00 |
|
Accounts payable |
700.00 |
||
(Being advertisement bill received) |
|||
Jan-30 |
Telephone expense |
130.00 |
|
Cash |
130.00 |
||
(Being telephone bill paid) |