of December. As the bookkeeper of Pat\'s Plowing, you have been asked to complet
ID: 2544216 • Letter: O
Question
of December. As the bookkeeper of Pat's Plowing, you have been asked to complete the entire accounting cycle for Pat from the following information. 5A-3. S50 201x Pat invested $16,000 cash and $10,200 worth of snow equipment into the plowing company. Jan. 1 1 Paid rent 6 months in advance for garage space, $2,400. 4 Purchased office equipment from Lang Corp. for $12,000 on account. 6 Purchased snow supplies for $300 cash. 12 20 26 28 29 30 8 Collected $8,000 from plowing local shopping centers Pat Munro withdrew $8,000 from the business for personal use. Plowed Hayfield parking lots, payment not to be received until March, $5,000. Paid salaries to employees, $2,200. Paid Lang Corp. one-half amount owed for office equipment. Advertising bill received from Taft Co. but will not be paid until March, $800. Paid telephone bill, $140 Use the following chart of accounts. Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Rent 115 Snow Supplies 121 Office Equipment 122 Accumulated Depreciation, Office Equipment 123 Snow Equipment 124 Accumulated Depreciation, Snow Equipment Liabilities 211 Accounts Payable 212 Salaries Payable Owner's Equity 311 P. Munro, Capital 312 P. Munro, Withdrawals 313 Income Summary Revenue 411 Plowing Fees Expenses 511 Salaries Expense 512 Advertising Expense 513 Telephone Expense 514 Rent Expense 515 Snow Supplies Expense 516 Depreciation Expense, Office Equipment 517 Depreciation Expense, Snow EquipmentExplanation / Answer
JOURNAL ENTRIES IN THE BOOKS OF PAT
(Amount in $)
Date
Particulars
Debit Amount
Credit Amount
1-Jan
Cash A/c Dear
16,000
Snow Equipment A/c Dear
10,200
To Capital A/c
26,200
(Being capital introduced)
1-Jan
Rent Expense A/c Dear
2,400
To cash A/c
2,400
(Being rent paid for 6 months in advance)
4-Jan
Office Equipment A/c Dear
12,000
To Accounts Payable A/c
12,000
(Being office equipment purchased on account from Lang Corp)
6-Jan
Snow Supplies A/c Dear
300
To cash A/c
300
(Being snow supplies purchased)
8-Jan
Cash A/c Dear
8,000
To Accounts Receivable A/c
8,000
(Being cash collected from local shopping centres)
12-Jan
Drawings A/c Dear
8,000
To cash A/c
8,000
(Being cash withdrew for personal use)
20-Jan
Accounts Receivable A/c Dr
5,000
To Ploughing Fee A/c
5,000
(Being fee receivable for ploughing to be received only after March)
26-Jan
Salary Expense A/ Dear
2,200
To cash A/c
2,200
(Being salaries paid)
28-Jan
Accounts Payable A/c Dear
6,000
To cash A/c
6,000
(Being half amount settled to Lang Corp)
29-Jan
Advertising expense A/c Dr
800
To Accounts Payable A/c
800
(Being advertising expense accrued but payment to be made only after March)
30-Jan
Telephone Expense A/c Dr
140
To cash A/c
140
(Being telephone expense incurred)
GENERAL LEDGER A/C
(Amount in $)
Particulars
Debit Amount
Particulars
Credit Amount
Cash
4,960
Accounts Payable
6,800
Snow Equipment
10,200
Ploughing fee
5,000
Office Equipment
12,000
Accounts Receivable
5,000
Snow Supplies
300
Drawings
8,000
Rent Expense
2,400
Salary Expense
2,200
Advertising Expense
800
Telephone Expense
140
46,000
11,800
JOURNAL ENTRIES IN THE BOOKS OF PAT
(Amount in $)
Date
Particulars
Debit Amount
Credit Amount
1-Jan
Cash A/c Dear
16,000
Snow Equipment A/c Dear
10,200
To Capital A/c
26,200
(Being capital introduced)
1-Jan
Rent Expense A/c Dear
2,400
To cash A/c
2,400
(Being rent paid for 6 months in advance)
4-Jan
Office Equipment A/c Dear
12,000
To Accounts Payable A/c
12,000
(Being office equipment purchased on account from Lang Corp)
6-Jan
Snow Supplies A/c Dear
300
To cash A/c
300
(Being snow supplies purchased)
8-Jan
Cash A/c Dear
8,000
To Accounts Receivable A/c
8,000
(Being cash collected from local shopping centres)
12-Jan
Drawings A/c Dear
8,000
To cash A/c
8,000
(Being cash withdrew for personal use)
20-Jan
Accounts Receivable A/c Dr
5,000
To Ploughing Fee A/c
5,000
(Being fee receivable for ploughing to be received only after March)
26-Jan
Salary Expense A/ Dear
2,200
To cash A/c
2,200
(Being salaries paid)
28-Jan
Accounts Payable A/c Dear
6,000
To cash A/c
6,000
(Being half amount settled to Lang Corp)
29-Jan
Advertising expense A/c Dr
800
To Accounts Payable A/c
800
(Being advertising expense accrued but payment to be made only after March)
30-Jan
Telephone Expense A/c Dr
140
To cash A/c
140
(Being telephone expense incurred)
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