Question

Harris Tree Cellular, Inc., completed the following transactions during April 2016, its first month of operations: Apr 1 Received $19,100 and issued ordinary shares. 2 Purchased $300 of office supplies on account. 4 Paid $14,700 cash for land to use as a building site. 6 Performed service for customer and received cash of $2,700. 9 Paid $200 on accounts payable. 17 Performed service for ShipEx on account totaling $1,000. 23 Collected $200 from ShipEx on account. 30 Paid the following expenses: salary; $1,300, rent $500. Requirement: • Prepare the T-accounts of all the accounts that were used in the preparation of the journal.

Answer 1

Solution

Journal Entries

Harris Tree Cellular, Inc.

Date	Transaction	Debit Amount ($)	Credit Amount ($)
2016, April 1	Cash	19,100
	Common Stock		19,100
	Issued ordinary shares for cash
April 2	Office supplies	300
	Account Payable		300
	Purchased office supplies on account
April 4	Land	14,700
	Cash		14,700
	Paid cash for land to use as a building site
April 6	Cash	2,700
	Service Revenue		2,700
	Cash received by performing services for customers
April 9	Account Payable	200
	Cash		200
	Payment made on accounts payable
April 17	Account Receivable (ShipEx)	1,000
	Service Revenue		1,000
	Performed services for ShipEx on account
April 23	Cash	200
	Account Receivable (ShipEx)		200
	Collected cash from ShipEx on account
April 30	Salary Expense	1,300
	Rent Expense	5,00
	Cash		1,800
	Payment for expenses

T-accounts that were used in the preparation of the journal

Cash Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 1	Common Stock	19,100	2016 April 4	Land	14,700
2016 April 6	Service Revenue	2,700	2016 April 9	Account Payable	200
2016 April 23	Account Receivable (ShipEx)	200	2016 April 30	Salary Expense	1,300
			2016 April 30	Rent Expense	5,00
			2016 April 30	Ending Balance	5,300
	Total	22,000		Total	16,700
2016 February 1	Beginning Balance	5,300

Common Stock Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
			2016 April 1	Cash	19,100
2016 April 30	Ending Balance	19,100
	Total	19,100		Total	19,100
			2016 February 1	Beginning Balance	19,100

Office Supplies Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 2	Account Payable	300	2016 April 30	Ending Balance	300
	Total	300		Total	300
2016 February 1	Beginning Balance	300

Account Payable Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 9	Cash	200	2016 April 2	Office Supplies	300
2016 April 30	Ending Balance	100
	Total	300		Total	300
			2016 February 1	Beginning Balance	100

Land Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 4	Cash	14,700	2016 April 30	Ending Balance	14,700
	Total	14,700		Total	14,700
2016 February 1	Beginning Balance	14,700

Service Revenue Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
			2016 April 6	Cash	2,700
2016 April 30	Ending Balance	3,700	2016 April 17	Account Receivable (ShipEx)	1,000
	Total	3,700		Total	3,700
			2016 February 1	Beginning Balance	3,700

Account Receivable (ShipEx) Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 17	Service Revenue	1,000	2016 April 23	Cash	200
			2016 April 30	Ending Balance	800
	Total	1,000		Total	1,000
2016 February 1	Beginning Balance	800

Salary Expense Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 30	Cash	1,300	2016 April 30	Ending Balance	NIL

Rent Expense Account

Date	Transaction	Debit Amount ($)	Date	Transaction	Credit Amount ($)
2016 April 30	Cash	500	2016 April 30	Ending Balance	NIL