Erubiom I: These T accounts at the end of the first month of operations, October
ID: 2509138 • Letter: E
Question
Erubiom I: These T accounts at the end of the first month of operations, October 2017 summarize the ledger of Paramus Gardening Company Inc. Cash Unearned Service Revenue Oct. 1 20,000 500 800 900 900 Oct. 15 1,200 25 3,500 Oct. 30 12 29 30 Common Stock Oct. 7 3,400 Oct. 29 800 Oct. 1 20,000 Supplies Service Revenue Oct. 45,700 Oct. 7 12 3,400 500 Account Payable Salaries and Wages Expense Oct. 25 3,500 Oct. 4 5,700 Oct. 15 1,200 Instructions (a) Prepare journal entries for all 8 transactions. (b) Prepare a trial balance at March 31, 2018 The next page is also available for this answer.Explanation / Answer
Date
Particular
Debit
Credit
01-Oct
Cash A/c Dr
$ 20,000.00
Capital A/c
$ 20,000.00
Narration -(20000 was injected in the businees)
04-Oct
Supplies Account Dr
$ 5,700.00
Accounts Payable A/c Cr
$ 5,700.00
Narration - (Goods purchased on credit)
07-Oct
Accounts Receivable A/c Dr
$ 3,400.00
Service revenue account Cr
$ 3,400.00
Narration - (goods sold on credit)
12-Oct
Cash A/c Dr
$ 500.00
Service revenue account Cr
$ 500.00
Narration - (Goods sold for cash)
15-Oct
Salary and wages Expense Account Dr
$ 1,200.00
Cash account Cr
$ 1,200.00
Narration - (Salary paid by cash)
25-Oct
Accounts payable Dr
$ 3,500.00
Cash Cr
$ 3,500.00
Narration - (Payment made to creditors by cash)
29-Oct
Cash Dr
$ 800.00
Accounts Receivable A/c cr
$ 800.00
Narration - (Payment received from creditors)
Date
Particular
Debit
Credit
30-Oct
Cash Dr
$ 900.00
Unearned service revenue
$ 900.00
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Trial balance
Account
Dr
Cr
Cash
17500
A/R
2600
Supplies
5700
A/P
2200.00000
Unearned service revenue
900.00000
Common stock
20000.00000
Serice revenue
3900.00000
Salary & wages exp
1200.00
Total
27000.00
27000.00
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Date
Particular
Debit
Credit
01-Oct
Cash A/c Dr
$ 20,000.00
Capital A/c
$ 20,000.00
Narration -(20000 was injected in the businees)
04-Oct
Supplies Account Dr
$ 5,700.00
Accounts Payable A/c Cr
$ 5,700.00
Narration - (Goods purchased on credit)
07-Oct
Accounts Receivable A/c Dr
$ 3,400.00
Service revenue account Cr
$ 3,400.00
Narration - (goods sold on credit)
12-Oct
Cash A/c Dr
$ 500.00
Service revenue account Cr
$ 500.00
Narration - (Goods sold for cash)
15-Oct
Salary and wages Expense Account Dr
$ 1,200.00
Cash account Cr
$ 1,200.00
Narration - (Salary paid by cash)
25-Oct
Accounts payable Dr
$ 3,500.00
Cash Cr
$ 3,500.00
Narration - (Payment made to creditors by cash)
29-Oct
Cash Dr
$ 800.00
Accounts Receivable A/c cr
$ 800.00
Narration - (Payment received from creditors)
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