Solution to Demonstr Demonstr ation Problem – Chapter Chapter 2 (a) & (c) Cash Date Date July
Explanation 1 5 15 20 21 29 30
Balance
No. 101 Ref.
Debit
Credit
Balance
1,400 2,000 0, 600 900
8,750 9,600 8,200 6,200 6,450 5,850 4,950
J1 J1 J1 J1 J1 J1
0,850 0, 850
250
Acc Ac c ou nt s Rec eivab eiv able le Date Date July
Explanation 1 5 10
Balance
No. 112 Ref.
Debit
Credit
Balance
0,850 0, 850
2,320 1,470 7,770
J1 J1
6,300
Suppl ies Date Date July
Explanation 1 26
Balance
No. 126 Ref.
Debit
Credit
1,900 2,250
J1
350
Equipm ent Date Date July
Explanation 1
Balance
Balance
No. 157 Ref.
Debit
Credit
Balance 9,000
Accou nt s Payable Date July
Explanation 1 20 26
Balance
No. 201 Ref.
Debit
Credit
Balance
350
5,500 3,500 3,850
J1 J1
2,000
Unearned Revenue Date
Explanation
July 1 17
Balance
No. 206 Ref.
Debit
Credit
0 0800 00,200
J1
0,600
Irene Bor is, Capital Date Jul y
Explanation 1
Balance
No. 301 Ref.
Debit
Credit
Explanation
Jul y 29
No. 306 Ref.
Debit
J1
0,600
Credit
Explanation
July 10 16 21
No. 426 Ref.
Debit
J1 J1 J1
Credit
Balance
6,300 0,600 250
06,300 06,900 7,150
Salaries Expense Date Ju ly 15
Explanation
Balance 00,600
Laund ry Revenue Date
Balance 15,670
Irene Bor is, Drawing s Date
Balance
No. 726 Ref.
Debit
J1
1,400
Credit
Balance 01,400
Utiliti es Expense Date
Explanation
July 31
No. 732 Ref.
Debit
J1
0,900
Credit
Balance 00,900
(b) J1 Date July
Acco unt Titles and Explanation
Ref.
5
Debit 0 ,850
Cash Accou nt s Rec eivable (Received collection s fr om customers on account)
101 112
10 Accounts Receivable Laund ry Revenue (Billed customers for services performed)
112 426
6,300
15 Salaries Expense Cash (Paid employee salaries)
726 101
1,400
16 Unearned Revenue Laund ry Revenue (Performed services fo r customers who paid in advance)
206 426
0,600
20 Accou nt s Payable Cash (Paid creditors on accoun t)
201 101
2,000
21 Cash
101 426
250
Laundry Revenue (Performed services for cash)
Credit 0 ,850
6,300
1,400
0,600
2,000
250
J1 Date July
(d)
Acco unt Titles and Explanation
Ref.
Debit 0, 350
26 Supplies Accou nt s p ayab le (Purchased suppl ies on account)
126 201
29 Irene Boris, Drawings Cash (Withdrew c ash for p ersonal use)
306 101
0,600
30 Utili ties Expense Cash (Paid utilities)
732 101
0,900
Credit 0, 350
0,600
0,900
IRENE’S COIN LAUNDRY Trial Balance July 31, 2002 Debit Cash...................................................................................... Acco unt s Receivable .......................................................... Supp li es ............................................................................... Equi pm ent ............................................................................ Acco unt s Payab le................................................................ Unearned Reven ue .............................................................. Irene Bo ri s, Capital .............................................................. Irene Bori s, Draw in gs ......................................................... Lau nd ry Revenu e ................................................................ Salaries Expense................................................................. Utili ties Exp ens e..................................................................
Credit
$04,950 007,770 002,250 009,000 $03,850 000,200 015,670 000,600 007,150 001,400 900 $26,870
$26,870
