General Ledger Cash Accounts Payable Lee Drawing g Lee Capital Notes Payable Sup
ID: 2341551 • Letter: G
Question
General Ledger Cash Accounts Payable Lee Drawing g Lee Capital Notes Payable Supplies Expense Fees Earned Accounts Receivable Salaries Payable Depreciation Expens Intereset Expense Supplies Unearned Revenue Salaries Expense Rent Expense Equipment Acc. Depr. Equip. Transaction Descriptions 09/01/17 a. Chris Lee, the owner invested $2,000,000 cash in the business. 09/01/17 b. Lee Co paid $2,000 for September rent expense. 09/01/17c. Lee Co paid $11,000 for supplies for future use, on account 09/01/17 d. The company purchased 400,000 of equipment on September 1, 2017 $300,000 cash, the balance, issued a note payable .The salvage value is $160,000, estimated life of 5 years. The note payable is due in four months on December 31, 2017 and the interest rate 12% 09/01/17 . Lee Co recelved $100,000 for future services 09/30/17 t. The company provided $200,000 of services to clients on account 09/30/17 g.Lee Co received a payment of $100,000 from a customer on account INSTRUCT: Journalize, post to T-accounts, determine T account balances, create unadjusted & adjusted trial balance. Prepare income statement, statement & balance sheet, and complete analysisExplanation / Answer
JOURNAL ENTRY Date Ref. Account Title Debit Credit Sept.1,2017 a Cash $2,000,000 Lee Capital $2,000,000 Sept.1,2017 b Prepaid Rent $2,000 Cash $2,000 Sept.1,2017 c Supplies $11,000 Accounts Payable $11,000 Sept.1,2017 d Equipment $400,000 Cash $300,000 Note payable $100,000 (400000-300000) Sept.1,2017 e Cash $100,000 Unearned revenue $100,000 Sep.30,2017 f Accounts receivable $200,000 Fees earned $200,000 Sep.30,2017 g Cash $100,000 Accounts receivable $100,000 T-ACCOUNTS Cash Date Ref Description Debit Credit Sept.1,2017 a Lee Capital $2,000,000 Sept.1,2017 b Prepaid Rent $2,000 Sept.1,2017 d Equipment $300,000 Sept.1,2017 e Unearned Revenue $100,000 Sep.30,2017 g Accounts Receivable $100,000 Ending Balance $1,898,000 Accounts Receivable Date Ref Description Debit Credit Sep.30,2017 f Fees Earned $200,000 Sep.30,2017 g Cash $100,000 Ending Balance $100,000 Prepaid Rent Date Ref Description Debit Credit Sept.1,2017 b Cash $2,000 Supplies Date Ref Description Debit Credit Sept.1,2017 c Accountspayable $11,000 Equipment Date Ref Description Debit Credit Sept.1,2017 d Purchase $400,000 Accounts Payable Date Ref Description Debit Credit Sept.1,2017 c Supplies $11,000 Notes Payable Date Ref Description Debit Credit Sept.1,2017 d Equipment $100,000 Unearned revenue Date Ref Description Debit Credit Sept.1,2017 e Cash $100,000 Lee capital Date Ref Description Debit Credit Sept.1,2017 a Cash $2,000,000 Fees Earned Date Ref Description Debit Credit Sep.30,2017 f Accounts receivable $200,000 UNADJUSTED TRIALBALANCE ADJUSTMENTS ADJUSTED TRIALBALANCE Account Debit Credit Account Debit Credit Account Debit Credit Cash $1,898,000 Cash Cash $1,898,000 Accounts Receivable $100,000 Accounts Receivable Accounts Receivable $100,000 Prepaid Rent $2,000 Prepaid Rent $2,000 Prepaid Rent $0 Supplies $11,000 Supplies Supplies $11,000 Equipment $400,000 Equipment Equipment $400,000 Accounts Payable $11,000 Accounts Payable Accounts Payable $11,000 Notes Payable $100,000 Notes Payable Notes Payable $100,000 Unearned revenue $100,000 Unearned revenue Unearned revenue $100,000 Lee capital $2,000,000 Lee capital Lee capital $2,000,000 Fees Earned $200,000 Fees Earned Fees Earned $200,000 Total $2,411,000 $2,411,000 Rent Expense $2,000 Rent Expense $2,000 ((400000-160000)/5)*(1/12) Depreciation Expense $ 4,000 Depreciation Expense $4,000 (100000*0.12*(1/12) Interest expense $ 1,000 Interest expense $1,000 Accumulated Depreciation $ 4,000 Accumulated Depreciation $ 4,000 Interest payable $ 1,000 Interest payable $ 1,000 TOTAL $2,416,000 $2,416,000 INCOME STAEMENT Fees Earned $200,000 Rent Expense $2,000 Depreciation Expense $4,000 Interest expense $1,000 Total expenses $7,000 Income $193,000 BALANCE SHEET ASSETS: Cash $1,898,000 Accounts Receivable $100,000 Prepaid Rent $0 Supplies $11,000 Equipment $400,000 Accumulated Depreciation $ (4,000) Total Assets $2,405,000 LIABILITIES Accounts Payable $11,000 Notes Payable $100,000 Unearned revenue $100,000 Interest payable $ 1,000 Total Liabilities $212,000 OWNERS EQUITY: Lee Capital $2,000,000 Retained earnings $193,000 Total Owners Equity $2,193,000 Total Liabilities and OwnersvEquity $2,405,000
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