Journalizing transactions, posting to T-accounts, and preparing a trial balance
ID: 2602020 • Letter: J
Question
Journalizing transactions, posting to T-accounts, and preparing a trial balance Consider the following transactional data for the first month of operations for Shine King Cleaning. Nov. Evan Hudson contributed S35,000 and his truck, with a market value of S8,000, to the business in exchange for capital 2 The business paid $2,000 to Pleasant Properties for November through February rent. (Debit Prepaid Rent) 3 Paid S2.400 for a business insurance policy for the term November 1, 2015 through October 31, 2016. (Debit Prepaid nsurance 4 Purchased cleaning supplies on account, $270 5 Purchasod on account an industrial vacuum cleaner costing $1,000. The invoice is payable November 25 7 Paid S1,200 for a computor and printor 9 Performed cleaning services on account in the amount of $3,000 10 Received $100 for services rendered on November 9 15 Paid employees, S500. 16 Received $3,600 for a 1-year contract beginning November 16 for cleaning services to be provided. Contract begins November 16, 2015, and ends November 15, 2016. (Credit Unearned Revenue) 17 Provided cleaning services and received $800 cash. 18 Received a utlity bill for $175 with a due date of December 4, 2015. (Use Accounts Payable) 20 Borrowed $40,000 from bank with interest rate of 9% per year. 21 Received $900 on account for services performed on November 9 25 Paid $500 on account for vacuum cleaner purchased on November 5 29 Paid S100 for advertising 30 Hudson withdrew cash of S600.Explanation / Answer
Date Particulars Debit Credit NOV.1 Cash $35,000 Vehicle $8,000 To Capital A/c $43,000 (Being capital is contributed) Nov.2 Prepaid A/c $2,000 To Cash $2,000 (Being prepaid rent) Nov.3 Prepaid Insurance A/c $2,400 To Cash $2,400 (Being insurance prepaid) Nov.4 Purcahse A/c $270 To Cash $270 (being claening supplies purchased) Nov. 5 Purchase A/c $1,000 To accounts payable $1,000 (Being industrial vaccum claener purchased) Nov. 7 Printion & stationey $1,200 To Cahs $1,200 (Being paid printig and stationey) Nov.9 account recivable $3,000 To service rendering $3,000 ( Being cleaning expense incurred) Nov.10 Cash A/c $100 Account recivable $2,900 To service rendering $3,000 (Cash Recived on service renedering) Nov. 15 Salaries A/c $500 To Cash a/c $500 (Being Salaries paid) Nov. 16 Cash A/c $3,600 To Advance Received $3,600 ( Being advance received) Nov. 17 Cash A/c $800 To providedclaening services $800 Nov.18 Utility Bill $175 To accounts Payable $175 ( Being utility bill payble) No. 20 Cash A/c $40,000 To Capital $40,000 ( Being capital borroed from bank) Nov. 21 Cash A/c $900 To service Performed $900 (Being Cash received on service performed) Nov.25 purchased A/c $500 To Cash $500 ( Being vaccum claener purchased) Nov.29 Advertising A/c $100 To Cash $100 (Being cash paid on advertising) Nov. 30 Capital A/c $600 To cash $600 ( being Cash Withdraw from capital) Nov. 30 Interest A/c $404 To Cash $404 ( Being Interst paid) Loan Buy : $40,000, on 20 $40000*41/365*9% 404 Trial Balance Debit Credit Cash $72,426 Vehicle $8,000 Capital $82,400 Prepaid $2,000 Prepaid Insurance $2,400 Purcahse $1,270 $500 Account recivable $2,500 Printion & stationey $1,200 Claening service render $3,000 Salaries $500 Advanced recived $3,600 claening service $800 Utility bill 175 accounts payable $675 Service performed Adversiting $100 Interest $404 Total $90,975 $90,975
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