DelaWare incurred the following transcations during July 2011, its first month o

Question

DelaWare incurred the following transcations during July 2011, its first month of operations:

July 1 The owner, Sue Ware, invested 5,000 $ Cash
10 Purchased 2,500$ worth of equipment on credit
12 Performed services for a client and recieved 10,000$ cash
14 Paid for expenses 3,500$
15 Completed services for a client and sent a bill for 1,500$
31 The owner withdrew 250$ cash for personal use

1) Create a General Ledger by setting up the following accounts: Cash, 101; Accounts receivable ,106; Equpiment , 150; Accounts payble , 201; Sue Ware, Capital, 301; Sue Ware, Withdrawls, 302; Revenue, 401; Expenses, 501

Explanation / Answer

General Ledger (Normal account balance) Cash $11,250 Accounts Receivable 1500 Equipment 2500 Accounts Payable 2500 Owner's Equity 5250 Revenue $11,500 Expense $3,500 Journal Entries (always do these and t-accounts when making a ledger) Debit Cash 5000 Credit Sue equity 5000 Debit Equipment 2500 Credit Accounts Payable Debit Cash 10,000 Credit Service Revenue 10,000 Debit Expenses 3500 Credit Cash 3500 Debit Accounts receivable 1500 Credit Service Revenue 1500 Debit Owner's Withdrawal 250 Credit Cash 250

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