Below are the transactions for October. I need to create a Journal Entry, Genera
ID: 2504480 • Letter: B
Question
Below are the transactions for October. I need to create a Journal Entry, General Ledger and Trial Balance. I understand the General Ledger and Trial balance and how to extract that information but I am having trouble understanding the Journal Entries. Below the transactions are what I have for the Journal Entries.The General Ledger and Trial Balance are a plus if you wish to do them but i'm not asking you to answer that. I just need clarification on what I am doing wrong in the Journal Entry because when I extract the information to the General Ledger and then into the Trial Balance, the numbers do not match what the teacher has as the answer for the total. In the Journal Entry, the total for debit/credit is $22,856 and the total in the Trial Balance is $18,662. Any help is appreciated.
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.
1-Oct Cash $12,000.00
Common Stock $12,000.00
1-Oct Prepaid Insurance $1,200.00
Cash $1,200.00
1-Oct Store Rent Expense $1,040.00
Cash $1,040.00
3-Oct Repair Eqipment $4,400.00
Cash $600.00
Accounts Payable $3,800.00
8-Oct Repair Supplies $390.00
Cash $390.00
12-Oct Utility Expense $154.00
Cash $154.00
16-Oct Cash $1,362.00
Bicycle Repair Revenue $1,362.00
19-Oct Accounts Payable $200.00
Cash $200.00
31-Oct Cash $1,310.00
Bicycle Repair Revenue $1,310.00
31-Oct Dividends $800.00
Cash $800.00
Explanation / Answer
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.
Dr Cash $12,000
Cr Common stock $12,000
Oct. 1 Paid the premium on a one-year insurance policy, $1,200
Dr Prepaid insurance $1,200
Cr Cash $1,200
Oct. 1 Paid the current month's rent, $1,040
Dr Rent expense $1,040
Cr Cash $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.
Dr Equipment $4,400
Cr Cash $600
Cr Accounts payable $3,800
Oct. 8 Purchased repair supplies from McKenna Company on credit, $390
Dr Repair supplies (asset, not expense) $390
Cr AP $390
Oct. 12 Paid utility bill for October, $154
Dr Utilities expense $154
Cr Cash $154
Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362
Dr Cash $1,362
Cr Repair revenue $1,362
Oct. 19 Made payment to McKenna Company, $200
Dr AP $200
Cr Cash $200
Oct. 31 Cash bicycle repair revenue for the last half of October, 1,310
Dr Cash $1,310
Cr Repair revenue $1,310
Oct. 31 Declared and paid cash dividend of $800.
Dr Dividend $800
Cr Cash $800
Dividend is closed off to Retained earnings.
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