Trying to figure out these transactions, can someone help me? Trying to put the

Question

Trying to figure out these transactions, can someone help me? Trying to put the transaction into a Journal Entries, General Ledger, Trial Balance.

Date Transaction Description Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock. Oct. 1 Paid the premium on a one-year insurance policy, $1,200. Oct. 1 Paid the current month's store rent expense, $1,040. Oct. 3 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1. Note: Use Accounts Payable for the Balance Due. Oct. 8 Purchased repair supplies from McKenna Company on credit, $390. Oct. 12 Paid utility bill for October, $154. Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362. Oct. 19 Made payment to McKenna Company, $200. Oct. 31 Cash bicycle repair revenue for the last half of October, $1,310. Oct. 31 Declared and paid cash dividend of $800.

Explanation / Answer

Journal Entries Oct 1. Cash, Debit 12,000 Common Stock, Credit, 12,000 Prepaid Insurance, Debit 1,200 Cash, Credit 1,200 Rent Expense, Debit 1,040 Cash, Credit 1,040 3 Equipment, Debit 4,400 Cash, Credit 600 Accounts Payable 3,800 8 Supplies, Debit 390 Accounts Payable, Credit 390 12 Utilities Expense, Debit 154 Cash, Credit 154 16 Cash, Debit 1,362 Repair Revenue, Credit 1,362 19 Accounts Payable, Debit 200 Cash, Credit 200 31 Cash, Debit 1,310 Repair Revenue, Credit 1,310 31 Retained Earnings, Debit 800 Dividends Payable, Credit 800 Now, to form the General Ledger is simple. You just need to add up the numbers for each specific account used in the journal entries. Ill do an example. *Cash has 14,672 debit transactions - 3,194 credit transactions = $11,478 After you do this for all the accounts you will have a general ledger, now you can form a trial balance. A trial balance is an organized form of a G.E. meaning it is broken down into Assets, Liabilities and Stockholder's Equity. After you are done with the ledger, list the amounts next to each account on the trial balance, i listed a few. Remember, assets must = liabilities + S/E. Trial Balance October 31 Assets Cash* 11,478 Prepaid Insurance Supplies Equipment Liabilities Accounts Payable Dividends Payable Stockholders Equity Common Stock 12,000 Retained Earnings** 1,478 **To calculate the RE you must do an income statement. IS: 1362+1310 (Revenue) - (1,040 + 154) of expenses = $1,478 of net income which can be added to the beginning balance of RE, in this case, $0. 0 + 1478 = $1,478 Please, RATE me! Any questions, comment.

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