Question

Please complete the mini accounting cycle with the following transactions.

1. Emma invested $100,000 dollars into her business for common stock.

2. Emma had a cash sale for $10,000 dollars.

3.Emma paid for rent with cash for $5,000.

4.Emma had a sale on account for $7000.

5.Emma paid for utilities with cash for 3,000 dolars.

6. Emma recieved cash for sale on account on transaction #4/

Answer 1

Journal

No.	General journal	Debit	Credit
1	Cash	100000
	common stock		100000
2	Cash	10000
	sales		10000
3	Rent expense	5000
	cash		5000
4	Accounts receivable	10000
	sales		10000
5	Utilities expense	5000
	cash		5000
6	Cash	10000
	accounts receivable		10000

Ledgers

Cash
1	100000	3	5000
2	10000	5	5000
6	10000
balance	110000
Accounts receivable
4	10000	6	10000
balance	0
Rent expense
3	5000
balance	5000
Utilities expense
5	5000
balance	5000

Common stock
		1	100000
		balance	100000
Sales
		2	10000
		4	10000
		balance	20000

Trial balance

Trial balance
items	debit	credit
Cash	110000
Accounts receivable	0
Common stock		100000
Sales		20000
Rent expense	5000
Utilities expense	5000
total	120000	120000

Income statement

Income statement
Sales	20000
less:
Rent expense	-5000
Utilities expense	-5000
net income	10000

Balance sheet

Balance sheet
Assets
Cash		110000
total assets		110000
Liabilties
Equity
common stock	100000
retained earnings	10000	110000
total liabilties & equity		110000