Question

ABC inc has the following transactions during December 2019

Dec 1	Share holders contributed $67,000 cash in exchange for common stock
1	Purchased a delivery van with cash, $25,000
1	Paid $9,000 cash as rent for Dec, Jan and Feb
3	Purchased supplies on account $1,800
9	Made deliveries for several customers on account $5,700
14	Received $1,500 cash from a customer as advanced payment for deliveries scheduled through January
17	Paid $1,200 cash to suppliers towards accounts payable
20	collected $2,300 on account from customers
29	Paid $350 cash dividends to shareholders
30	Paid employee for Dec $1,500

A. Prepare journal entires to record the above transaction in a general journal

B. Prepare a general ledger

C. Prepare an unadjusted trial balance

Answer 1

Requirement A:

Date	Account Titles and Explanation	Debit	Credit
Dec. 1	Cash	$       67,000
	Common Stock		$      67,000
	(To record Common Stock Issued)
Dec. 1	Delivery Van	$       25,000
	Cash		$      25,000
	(To record van purchase)
Dec. 1	Prepaid Rent	$         9,000
	Cash		$         9,000
	( To record prepaid rent )
Dec. 3	Supplies	$         1,800
	Account Payable		$         1,800
	(To record supplies purchase)
Dec. 9	Accounts Receivable	$         5,700
	Service Revenue		$         5,700
	( To record service revenue)
Dec. 14	Cash	$         1,500
	Unearned service revenue		$         1,500
	( To record unearned service revenue)
Dec. 17	Accounts Payable	$         1,200
	Cash		$         1,200
	(To record account payable paid)
Dec. 20	Cash	$         2,300
	Accounts Receivable		$         2,300
	[To record accounts receivable collected]
Dec. 29	Dividend	$             350
	Cash		$            350
	[To record dividend paid]
Dec. 30	Salaries Expense	$         1,500
	Cash		$         1,500
	[To record salary expense]

Requirement B:

Cash
Dec. 1	$                     67,000	Dec. 1	$        25,000
Dec. 14	$                        1,500	Dec. 1	$          9,000
Dec. 20	$                        2,300	Dec. 17	$          1,200
		Dec. 29	$              350
End Balance	$                     33,750	Dec. 30	$          1,500
Common Stock
		Dec. 1	$        67,000
		End Balance	$        67,000
Service Revenue
		Dec. 9	$          5,700
		End Balance	$          5,700
Delivery Van
Dec. 1	$                     25,000
End Balance	$                     25,000
Prepaid Rent
Dec. 1	$                        9,000
End Balance	$                        9,000
Supplies
Dec. 3	$                        1,800
End Balance	$                        1,800
Accounts Receivables
Dec. 9	$                        5,700	Dec. 20	$          2,300
End Balance	$                        3,400
Unearned service revenue
		Dec. 14	$          1,500
		End Balance	$          1,500
Account Payable
Dec. 17	$                        1,200	Dec. 3	$          1,800
		End Balance	$              600
Dividend
Dec. 29	$                           350
End Balance	$                           350
Salaries Expense
Dec. 30	$                        1,500
End Balance	$                        1,500

Requirement C:

ABC Inc.
Unadjusted Trial Balance
Dec-19
Account title	Debit	Credit
Cash	$     33,750	$                -
Accounts Receivable	$        3,400	$                -
Supplies	$        1,800	$                -
Prepaid Rent	$        9,000	$                -
Delivery Van	$     25,000	$                -
Accounts Payable	$               -	$             600
Unearned service revenue	$               -	$         1,500
Common stock	$               -	$       67,000
Sales revenue	$               -	$         5,700
Salaries Expense	$        1,500	$                -
Dividend	$           350	$                -
Total	$     74,800	$       74,800