Question

Problem 1: Part A - Write the journal entries for the current year.
Jan. 2 - Owner Paul Jones invests $30,000 in business.
Jan. 5 - Paul receives $1,000 cash for fees earned from customer.
Jan. 8 - Paul invoices customer on account for $400 for fees earned.
Jan. 10 - Paul recevices $300 from customer on their account.
Jan. 11 - Paul Purchases $100 of supplies on account.
Jan. 12 - Paul withdrawls $2,000 cash.

Part B - Post to ledgers the above journal entries and balance after each transaction.
	Assume all entries are on journal page 1 for post reference in ledgers.
	Place account numbers as post reference in the journal when done posting.

Answer 1

Part A:

Answer:
Journal Entries				(Amount in $)
Sl No	Particulars		L/F	Debit	Credit
1	Cash A/c	Dr	2	30,000
	To Paul Jones's Capital A/c		1		30,000
	{Being investment made in own business accounted}
2	Cash A/c	Dr	2	1,000
	To Fees Earned A/c		4		1,000
	{Being fee earned from the customer accounted}
3	Accounts Receivable A/c	Dr	3	400
	To Fees Earned A/c		4		400
	{Being invoice made to the customer for fee earnded accounted}
4	Cash A/c	Dr	2	300
	To Accounts Receivable A/c		3		300
	{Being amount received from accounts receivable accounted}
5	Purchases A/c	Dr	5	100
	To Accounts Payable A/c		6		100
	{Being purchase made accounted}
6	Paul Jones's Capital A/c	Dr	1	2,000
	To Cash A/c		2		2,000
	{Being drawings made by paul charged to capital account}
	Total			33,800	33,800

Part B:

Answer:

			(Amount in $)
1. Paul Jones's Capital Account
Debit		Credit
Particulars	Amount	Particulars	Amount
By Cash A/c	30,000	To Cash A/c	2,000
		To Balance c/d	28,000
Total	30,000	Total	30,000
			(Amount in $)
2. Cash Account
Debit		Credit
Particulars	Amount	Particulars	Amount
By Paul Jones's Capital A/c	2,000	To Paul Jones's Capital A/c	30,000
		To Fees Earned A/c	1,000
		To Accounts Receivable A/c	300
By Balance c/d	29,300
Total	31,300	Total	31,300

			(Amount in $)
3. Accounts Receivable Account
Debit		Credit
Particulars	Amount	Particulars	Amount
By Cash A/c	300	To Fees Earned A/c	400
By Balance c/d	100
Total	400	Total	400
			(Amount in $)
4. Fees Earned Account
Debit		Credit
Particulars	Amount	Particulars	Amount
By Cash A/c	1,000
By Accounts Receivables A/c	400
		To Balance c/d	1,400
Total	1,400	Total	1,400

			(Amount in $)
5. Purchases Account
Debit		Credit
Particulars	Amount	Particulars	Amount
		To Accounts Payable A/c	100
By Balance c/d	100
Total	100	Total	100
			(Amount in $)
6. Accounts Payable Account
Debit		Credit
Particulars	Amount	Particulars	Amount
By Purchases A/c	100
		To Balance c/d	100
Total	100	Total	100