Record the following transactions in the journal and post them to the ledger. Pr

Question

Record the following transactions in the journal and post them to the ledger. Prepare a trial balance, and income statement, and owner equity statement and a balance sheet. Tessa's trucking began business on July 1 and had the following transactions. Tessa's trucking is a sole proprietorship (7-1)tessa taylor contributed $300,000 cash to tessa trucking "tt". The contribuation was made in cash. (7-2) tt punchased a trucking for $100,000cash (7-3)tt purchased supplies from home depot on account for $10,000 (7-5) tt moved aaron judges to new York and billed him $200,000 (7-7) tt paid the home depot account payable from (7-3)S10,000 in cash (7-8) aaron judse paid his account receivable from(7-5) $200,000) in cash (7-31) paid salary in cash$10,000 (7-31)paid rent in cash$20,000

Explanation / Answer

Journal

Date

Account Titles & Explanation

Debit

Credit

7-1

Cash

$300000

      Capital

$300000

(For recording contribution of cash as capital)

7-2

Trucking

$100000

      Cash

$100000

(For recording trucking in cash)

7-3

Supplies

$10000

      Accounts payable

$10000

(For recording purchase of supplies on account)

7-5

Accounts receivable

$200000

      Sales revenue

$200000

(For recording revenue on account)

7-7

Accounts payable

$10000

      Cash

$10000

(For recording payment of accounts payable)

7-8

Cash

$200000

      Accounts receivable

$200000

(For recording cash receipt from account receivables)

7-31

Salary expense

$10000

      Cash

$10000

(For recording payment of salary)

7-31

Rent expense

$20000

      Cash

$20000

(For recording payment of rent expense)

Cash

Date

Debit

Credit

7-1

$300000

7-2

$100000

7-7

$10000

7-8

$200000

7-31

$10000

7-31

$20000

Ending balance $360000

Capital

Date

Debit

Credit

7-1

$300000

Ending balance $300000

Trucking

Date

Debit

Credit

7-2

$100000

Ending balance $100000

Supplies

Date

Debit

Credit

7-3

$10000

Ending balance $10000

Sales Revenue

Date

Debit

Credit

7-5

$200000

Ending balance $200000

Accounts payable

Date

Debit

Credit

7-3

$10000

7-7

$10000

Accounts receivable

Date

Debit

Credit

7-5

$200000

7-8

$200000

Salary Expense

Date

Debit

Credit

7-31

$10000

Ending balance $10000

Rent Expense

Date

Debit

Credit

7-31

$20000

Ending balance $20000

Trial Balance at the end of Month

Accounts Title

Debit

Credit

Cash

$360000

Capital

$300000

Trucking

$100000

Supplies

$10000

Sales revenue

$200000

Salary expense

$10000

Rent expense

$20000

Total

$500000

$500000

Income Statement For the year

Sales revenue

$200000

Less:

Salary expense

($10000)

Rent expense

($20000)

Net income

$170000

Owner’s Equity Statement

Beginning capital

$300000

Add: Net income

$170000

Ending capital

$470000

Balance Sheet at the end of year

Liability & Equity;

Owners’ equity

$470000

Total liabilities and equity

$470000

Assets;

Cash

$360000

Supplies

$10000

Trucking

$100000

Total assets

$470000

Journal

Date

Account Titles & Explanation

Debit

Credit

7-1

Cash

$300000

      Capital

$300000

(For recording contribution of cash as capital)

7-2

Trucking

$100000

      Cash

$100000

(For recording trucking in cash)

7-3

Supplies

$10000

      Accounts payable

$10000

(For recording purchase of supplies on account)

7-5

Accounts receivable

$200000

      Sales revenue

$200000

(For recording revenue on account)

7-7

Accounts payable

$10000

      Cash

$10000

(For recording payment of accounts payable)

7-8

Cash

$200000

      Accounts receivable

$200000

(For recording cash receipt from account receivables)

7-31

Salary expense

$10000

      Cash

$10000

(For recording payment of salary)

7-31

Rent expense

$20000

      Cash

$20000

(For recording payment of rent expense)

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