Val Wightman
Exercise 2-4 Preparing general journal entries
Need to complete all worksheets on the example
Prepare general journal entries for the following transactions of a new business called Pose for Pics. Aug. 1 Hashim Paris, the owner, invested $7,500 cash and $32,500 of photography equipment in the business. 1 Paid $3,000 cash for an insurance policy covering the next 24 months. 5 Purchased office supplies for $1,400 cash. 20 Received $2,650 cash in photography fees earned. 31 Paid $875 cash for August utilitie
Pose for Pics Date Aug 1
PR Cash Photo Equipment
101
Debit 7,500 32,500
40,000
Investment by owner
Cash Insurance policy for 24 mos.
Credit
101 108
3,000
3,000
101 163
1,400
101
2,650
Aug 5 Cash Purchased supplies for cash
1,400
Aug 20 Cash
2,650
Photography fees earned
Aug 31 Cash August utilities
101
875 875
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47,925
47,925
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Need to complete Exercise 2-5 Preparing T-accounts anda trail balance
all worksheets on the example
Use the information in Exercise 2-4 to prepare an August 31 trial balance for Pose-for-Pics. Open these T-accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; H. Paris, Capital; Photography Fees Earned; and Utilities Expense. Post the general journal entries to these T-accounts (which will serve as the ledger), and prepare a trial balance.
Aug
1 20
Cash 7500 Aug-10 2650 5 31 10150
3000 1400 875 5275
Aug-10
Office Supplies 1400
H. Paris, Capital Aug-10 Aug
Aug
1
Photography Equipment 32500
5
Prepaid Insurance 3000
Aug-10
Photography Fees Earned Aug-10
40000
Utilities Expense 875
2650
Pose-for-Pics Trial Balance August 31 Debit
Cash Office Supplies Prepaid Insurance Photography Equipment
Credit
4,875 1,400 3,000 32,500
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H. Paris, Capital Photography Fees Earned Utilities Expense Total
40,000 2,650 875 42,650
42,650
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5
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Val Wightman
Problem 2-2A Journal entries see below.
Need to complete all worksheets on the example
Shelton Engineering completed the following transactions in the month of June. a. Shania Shelton, the owner, invested $105,000 cash, office equipment with a value of $6,000, and $45,000 of drafting equipment to launch the business. b. Purchased land worth $54,000 for an office by paying $5,400 cash and signing a long-term note payable for $48,600. c. Purchased a portable building with $75,000 cash and moved it onto the land acquired in b. d. Paid $6,000 cash for the premium on an 18-month insurance policy. e. Completed and delivered a set of plans for a client and collected $5,700 cash. f. Purchased $22,500 of additional drafting equipment by paying $10,500 cash and signing a longterm note payable for $12,000. g. Completed $12,000 of engineering services for a client. This amount is to be received in 30 days. h. Purchased $2,250 of additional office equipment on credit. i. Completed engineering services for $18,000 on credit. j. Received a bill for rent of equipment that was used on a recently completed job. The $1,200 rent must be paid within 30 days. k. Collected $7,200 cash in partial payment from the client described in transaction g. l. Paid $1,500 cash for wages wages to a drafting assistant. m. Paid $2,250 cash to settle the account payable created in transaction h. n. Paid $675 cash for minor repairs to the drafting equipment. o. Shelton withdrew $9,360 cash for personal use. p. Paid $1,500 cash for wages to a drafting assistant. q. Paid $3,000 cash for advertisements in the local newspaper during June. 1. Prepare general journal entries to record these transactions (use the account titles listed in part 2). 2. Open the following accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163);
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Val Wightman
Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); S. Shelton, Capital (301); S. Shelton, Withdrawals (302); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.
Debit
Credit
a. Cash
b.
101
105,000
Office Equipment
163
6,000
Drafting Equipment
164
45000
Shania Shelton, Capital
301
Land
172
Cash
101
1560000 54,000 5,400 48600
Purchase of land with cash and note payable
c. Cash Purchased building
101 170
75000
75,000
101 108
6000
d. Cash Purchased 18-month insurance policy
6,000
e. Cash Payment for completed work
101 402
57 5700 5700
f.
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Cash Notes Payable Draft Equipment
101 250 164
10,500 12000
Accounts Receivable Engineering Fees Earned
106 602
12000
Office Equipment Account Payable
163 201
2250
Account Receivable Engineering Fees Earned
106 402
18000
Account Payable Equipment Rental Expense
201 602
Cash Accounts Receivable
101 106
Cash Wages Expense
101 601
1500
Cash Accounts Payable
101 201
2250
Cash Repair Expense
101 604
675
22500
g.
12000
h.
2250
i.
18000
j. 1,200 1200
k. 72 7200 7200
l. 1,500
m. 2,250
n. 675
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o. Cash S. Shelton. Withdrawls
101 302
9360
9,360
Cash Wages Expense
101 602
1500
Cash Advertising fees
101 603
3000
p. 1,500
q. 3,000
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Val Wightman
2-2A 2-2A T-ac T-acco coun unts ts
Post Post the the jou journ rnal al entr entrie ies s fro from m par partt 1 to the the acc accou ount nts s and and ente enterr the the bala balanc nce e aft after er each each post postin ing g
Need to complete all worksheets on the example Cash Date
No. 101 Debit
105,000
Credit
Debit
99,600
75,000
24,600
1,200
18,600
2,250
6,000
No. 201 Credit
Balance
2,250 1,200
24,300 10,500
7200
13,800 21,000
Notes Payable Date
Debit
No. 250 Credit
1,500
19,500
48,600
2,250
17,250
12,000
675
16,575
9,360
7,215
1,500
5,712
3,000
2,715
Accounts Receivable Debit
Date
5400
5700
Date
Balance
Accounts Payable
60600 S. Shelton, Capital Date
Debit
No. 301 Credit
Balance
156,000
No. 102 Credit
Balance
156,000
Balance
12000 18000
S. Shelton, Withdrawals
7,200
Date
22800 Prepaid Insurance Date
Debit
Credit
Balance
6,000
Credit
Engineering Fees Earned Debit
Credit
6000
18,000
No. 163
5,700
Balance
Balance
9360 Date
Office Equiment Debit
Credit
9,360
No. 108
6,000
Date
Debit
No. 302
402 Balance
12,000 35700
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6,000
Wages Expense Date
Drafting Equipment Date
Debit
No. 164 Credit
45,000 22,500 2250 Building Date
Debit
Balance
69750 Credit
No. 170 Balance
75,000 75000 Land Date
Debit
Credit
No. 172 Balance
54,000 54000
Debit
No. 601 Credit
Balance
1,500 1,500
3,000
Equi Equip pment ment Rent Renta al Exp Expen ense se Date Debit Credit
No. No. 602 602 Balance
1,200 Advertising Expense Date Debit Credit
1200 603 Balance
3,000 3000 Repairs Expense Date Debit
Credit
No. 604 Balance
675 675
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Val Wightman
2-2A 3. Prepare a trial balance as of the end of this month’s operations
Need to complete all worksheets on the example Shelton Engineering Trial Balance June 30 Debit
Cash Accounts receivable
Credit
2,715 22,800
Prepaid Insurance
6,000
Office Equipment
6,000
Drafting Equipment
69,750
Building
75,000
Land
54,000
Accounts Payable
1200
Notes Payable
60,600
S. Shelton, Capital S. Shelton, Withdrawals
156,000 9,360
Engineering Fees earned Wages Expense
3,000
Equipment Rental Expense
1,200
Advertising Expense
3,000
Repairs Expense Total
35,700
675 253,500
253,500
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