Question 5(18 Marks) Pam\'s Party Planning provides food service and bartending
ID: 2413301 • Letter: Q
Question
Question 5(18 Marks) Pam's Party Planning provides food service and bartending for private and corporate parties Pam's does not prepare the food, but does provide supplies such as dishes, linens and ice for the event. The ollowing transactions occurred in December 2015, the first month of the business operations Dec1 Pamela Peppermint invested $20,000 in the business Dec 3 Business purchased a used delivery van for $7,500 on account Dec5 Purchased supplies for cash $2,300 Dec7 Signed contract to provide services at a party to be held in January Received a deposit of $750 from the customer Dec 8 Provide services for a corporate party Received full payment in the amount of $3,100 Dec 10 Paid the staff who worked at the December 8 pany $950 in wages Dec 14 Provides services for a private party Issued an invoice for $1,600 to the customer who will pay in January Paid $425 for an advertisement in the local newspaper The ad began running every day for a week starting December 10 Pamela Peppermint withdrew $1,600 for personal use Paid for a one-year insurance policy on the delivery van for $2,800, effective Jan 1 to Dec 31, 2016 Dec 18 Dec 23 Dec 31 Instructions a Prepare the journal entries for the above transactions. Explanations are not necessary (10 marks) b. Prepare a trial balance at December 31, 2015 based on the above accounts (8 marks)Explanation / Answer
Cash A/c Dr.
To Capital A/c
20,000
20,000
Van A/c. Dr.
To Account Payable A/c
7,500
7,500
Cash A/c. Dr.
To Advance Received A/c
750
Cash A/c. Dr.
To Revenue from services A/c
3100
Wages A/c Dr.
To Cash A/c
950
Advertising Expenses A/c Dr.
To Expenses Payable A/c
60.7
Advertising Expenses A/c Dr.
To Expenses Payable A/c
60.7
Advertising Expenses A/c. Dr.
To Expenses Payable A/c
60.7
Advertising Expenses A/c. Dr.
To Expenses Payable A/c
60.7
Advertising Expenses A/c Dr.
To Expenses Payable A/c
60.7
Party A/c Dr.
To Revenue from Services A/c
1600
Advertising Expenses A/c. Dr.
To Expenses Payable A/c
60.7
Advertising Expenses A/c . Dr.
To Expenses Payable A/c
60.8
Expenses Payable A/c .Dr.
To Cash A/c
425
Drawings A/c . Dr.
To Cash A/c
1600
Pre-paid Insurance A/c Dr.
To Cash A/c
2800
Trial Balance
TOTAL . 32950. 32950
Date Particulars Debit Dec. 1Cash A/c Dr.
To Capital A/c
20,000
20,000
Dec. 3Van A/c. Dr.
To Account Payable A/c
7,500
7,500
Dec. 7Cash A/c. Dr.
To Advance Received A/c
750750
Dec. 8Cash A/c. Dr.
To Revenue from services A/c
31003100
Dec. 10Wages A/c Dr.
To Cash A/c
950950
Dec. 10Advertising Expenses A/c Dr.
To Expenses Payable A/c
60.760.7
Dec. 11Advertising Expenses A/c Dr.
To Expenses Payable A/c
60.760.7
Dec. 12Advertising Expenses A/c. Dr.
To Expenses Payable A/c
60.760.7
Dec. 13Advertising Expenses A/c. Dr.
To Expenses Payable A/c
60.760.7
Dec. 14Advertising Expenses A/c Dr.
To Expenses Payable A/c
60.760.7
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.