Question

1	Helen Kennedy invested $70,000 cash in the business.
2	Paid October office rent of $4,000; issued Check 1001.
5	Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.
6	Issued Check 1002 for $4,100 to purchase art equipment.
7	Purchased supplies for $1,670; paid with Check 1003.
10	Issued Check 1004 for $800 for office cleaning service.
12	Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.)
15	Returned damaged supplies for a cash refund of $300.
18	Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days. (Use one compound entry.)
20	Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.
26	Performed services for $4,800 on credit.
27	Paid $375 for monthly telephone bill; issued Check 1007.
30	Received $4,200 in cash from credit customers.
30	Mailed Check 1008 to pay the monthly utility bill of $1,080.
30	Issued Checks 1009–1011 for $9,000 for salaries.

Post the above transactions to the ledger accounts.

Cash Account No. 101 Accounts Receivable Account No. 111 Date Debit Credit Balance Date Debit Credit Balance Supplies Account No. 121 Office Equipment Account No. 141 Date Debit Credit Balance Date Debit Credit Balance Art Equipment Account No. 151 Accounts Payable Account No. 202 Date Debit Credit Balance Date Debit Credit Balance Helen Kennedy, Capital Account No. 301 Helen Kennedy, Drawing Account No. 302 Date Debit Credit Balance Date Debit Credit Balance Fees Income Account No. 401 Office Cleaning Expense Account No. 511 Date Debit Credit Balance Date Debit Credit Balance Rent Expense Account No. 514 Salaries Expense Account No. 517 Date Debit Credit Balance Date Debit Credit Balance Telephone Expense Account No. 520 Utilities Expense Account No. 523 Date Debit Credit Balance Date Debit Credit Balance

Answer 1

	General Journal
Date	Particular	Amount (DR)	Amount (CR)
1-Oct	Cash	$                       70,000.00
	To Helen Kannedy		$                               70,000.00
	(Being amount deposited by Helen Kennedy in the business)
2-Oct	Rent	$                         4,000.00
	To Cash		$                                 4,000.00
	(Being amount of check No.1001 issued for oct rent)
5-Oct	Furniture & Fixture	$                       18,000.00
	To Accounts Payable		$                               18,000.00
	(Being amount of furniture purchased on account from Office Furniture Mart against Inv. No.6704)
6-Oct	Art Equipment	$                         4,100.00
	To Cash		$                                 4,100.00
	(Being amount paid vide check no,1002 for purchase of Art Equipment)
7-Oct	Supplies	$                         1,670.00
	To Cash		$                                 1,670.00
	(Being amount paid vide check no. 1003 for purchase of supplies
10-Oct	Office Cleaning Service	$                             800.00
	To Cash		$                                     800.00
	(Being amount paid vide check no. 1004 for Office cleaning service)
12-Oct	Cash	$                         4,200.00
	Accounts Receivable	$                         1,800.00
	To Fees Income		$                                 6,000.00
	(Being amount of Serice Revenue)
15-Oct	Cash
	To supplies	$                             300.00
	(Being amount refund received for damaged supplies)		$                                     300.00
18-Oct	Office Equipment(Computer)	$                         3,000.00
	To Accounts Payable		$                                 1,250.00
	To Cash		$                                 1,750.00
	(Being amount of computer purchased from Office Furniture Mart vide nvoice No. 7108 by paying check no.1005 for $1750 and balance after 30 days)
20-Oct	Accounts Payable	$                         9,500.00
	To Cash		$                                 9,500.00
	(Being amount paid on account to Office Service Mart against invoice no.6704)
26-Oct	Accounts Receivable	$                         4,800.00
	To Fees Income		$                                 4,800.00
	(Being amount of Service Performed)
27-Oct	Telephone Expenses	$                             375.00
	To Cash		$                                     375.00
	(Being amount of Telephone Expenses paid vide check no.1007)
30-Oct	Cash	$                         4,200.00
	To Accounts Receivable		$                                 4,200.00
	(Being amount received from customer)
30-Oct	Utiltiy Expenses	$                         1,080.00
	To Cash		$                                 1,080.00
	(Being amount of paid of utility expenses vide check no.1008)
30-Oct	Salary A/c	$                         9,000.00
	To Cash		$                                 9,000.00
	(Being amount of check paid 1009-1011 for salaries)
	Cash A/c			Acc No.101
Date	Particular	Amount (Dr)	Amount (CR)	Balance
1-Oct	Helen Kannedy	$                       70,000.00		$ 70,000.00
2-Oct	Rent		$                                 4,000.00	$ 66,000.00
6-Oct	Art Equipment		$                                 4,100.00	$ 61,900.00
7-Oct	Supplies		$                                 1,670.00	$ 60,230.00
10-Oct	Office Cleaning Sevice		$                                     800.00	$ 59,430.00
12-Oct	Fees Income	$                         4,200.00		$ 63,630.00
15-Oct	Supplies	$                             300.00		$ 63,930.00
18-Oct	Computer		$                                 1,750.00	$ 62,180.00
20-Oct	Accounts Payable		$                                 9,500.00	$ 52,680.00
27-Oct	Telephone Expenses		$                                     375.00	$ 52,305.00
30-Oct	Accounts Receivable	$                         4,200.00		$ 56,505.00
30-Oct	Utiltiy Expenses		$                                 1,080.00	$ 55,425.00
30-Oct	Salaries Expenses		$                                 9,000.00	$ 46,425.00
	Accounts Receivable A/c			Acc No.111
Date	Particular	Amount (Dr)	Amount (CR)	Balance
12-Oct	Fees Income	$                         1,800.00		$    1,800.00
26-Oct	Fees Income	$                         4,800.00		$    6,600.00
30-Oct	Cash		$                                 4,200.00	$    2,400.00
	Supplies			Acc No.121
Date	Particular	Amount (Dr)	Amount (CR)	Balance
7-Oct	Cash	$                         1,670.00		$    1,670.00
15-Oct	Cash		$                                     300.00	$    1,370.00
	Furniture & Fixture
Date	Particular	Amount (Dr)	Amount (CR)	Balance
5-Oct	Accounts Payable	18000		18000
	Office Euipment			Acc No.202
Date	Particular	Amount (Dr)	Amount (CR)	Balance
18-Oct	Accounts Payable	$                         1,250.00		$    1,250.00
	Accounts Payable	$                         1,750.00		$    3,000.00
	Art Equipment			Acc No.151
Date	Particular	Amount (Dr)	Amount (CR)	Balance
6-Oct	Cash	$                         4,100.00		$    4,100.00
	Accounts Payable			Acc No.202
Date	Particular	Amount (Dr)	Amount (CR)	Balance
5-Oct	Furniture & Fixture		$                               18,000.00	$ 18,000.00
18-Oct	Office Equipment		$                                 1,250.00	$ 19,250.00
20-Oct	Cash	$                         9,500.00		$    9,750.00
	Helen Kennedy's Capital			Acc No.301
Date	Particular	Amount (Dr)	Amount (CR)	Balance
12-Oct	Cash		70000	70000
	Fees Income			Acc No.401
Date	Particular	Amount (Dr)	Amount (CR)	Balance
12-Oct	Cash		4200	4200
12-Oct	Accounts Receivable		1800	6000
26-Oct	Accounts Receivable		4800	10800
	Office Cleaning Expenses			Acc No.511
Date	Particular	Amount (Dr)	Amount (CR)	Balance
10-Oct	Cash	800		800
	Rent Expenses			Acc No.514
Date	Particular	Amount (Dr)	Amount (CR)	Balance
2-Oct	Cash	4000		4000
	Salaries Expenses			Acc No.517
Date	Particular	Amount (Dr)	Amount (CR)	Balance
30-Oct	Cash			9000
	Telephone Expenses			Acc No.520
Date	Particular	Amount (Dr)	Amount (CR)	Balance
30-Oct	Cash	375		375
	Utilties Expenses			Acc No.523
Date	Particular	Amount (Dr)	Amount (CR)	Balance
30-Oct	Cash	1080		1080