PR 2- 3A Journal entries and trial balance On April 1, 2012, Kathleen Alvarez es
ID: 2343916 • Letter: P
Question
PR 2- 3A Journal entries and trial balance On April 1, 2012, Kathleen Alvarez established an interior decorating business, Intrex Designs. During the month, Kathleen completed the following transactions related to the business: Apr.1. Kathleen transferred cash from a personal bank account to an account to be used for the business, $ 17,000.
2. Paid rent for period of April 2 to end of month, $ 3,400.
6. Purchased offi ce equipment on account, $ 10,000.
8. Purchased a used truck for $ 21,000, paying $ 2,000 cash and giving a note payable for the remainder.
10. Purchased supplies for cash, $ 1,800.
12. Received cash for job completed, $ 13,000.
Explanation / Answer
1.
Debit: Cash 17,000
Credit: Owners equity 17,000
2.
Debit: Rent expense 3,400
Credit: Cash 3,400
6.
Debit: Equipment 10,000
Credit: Accounts payable 10,000
8.
Debit: Truck 21,000
Credit: Notes payable 19,000
Credit: Cash 2,000
10.
Debit: Supplies 1,800
Credit: Cash 1,800
12.
Debit: Cash 13,000
Credit: Revenue 13,000
Trial Balance
Debit
Credit
Cash
22,800
Supplies
1,800
Truck
21,000
Equipment
10,000
Rent expense
3,400
Accounts payable
10,000
Notes payable
19,000
Owners Equity
17,000
Revenue
13,000
Total
59,000
59,000
Debit
Credit
Cash
22,800
Supplies
1,800
Truck
21,000
Equipment
10,000
Rent expense
3,400
Accounts payable
10,000
Notes payable
19,000
Owners Equity
17,000
Revenue
13,000
Total
59,000
59,000
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