Question

Record the following selected transactions for April in a two-column journal, identifying each entry by letter: (put letter into column of date, such as (a)) (20 points total)
(a) Received $18,000 from Katie Long, owner.
(b) Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder.
(c) Paid $2,300 for rent for April.
(d) Purchased $1,500 of supplies on account.
(e) Recorded $9,800 of fees earned on account.
(f) Received $7,500 in cash for fees earned.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $3,425.
(i) Received $7,900 from customers on account.
(j) Recorded owner’s withdrawal of $1,875.
Date Description Post Ref Debit Credit
2. Post all these transactions into T-account and prepare an unadjusted Trial Balance based on the information above
(Hint: Please use letter as reference when posting, such as (a). There are totally 11 accounts.)

Answer 1

Answer:

Required 1.

a.

Cash $18,000 (debit)

Capital $18,000 (credit)

b.

Equipment $27,000 (debit)

Cash $10,000 (credit)

Note Payable $17,000 (credit)

c.

Rent Expense $2,300 (debit)

Cash $2,300 (credit)

d.

Supplies $1,500 (debit)

Trade Payable $1,500 (credit)

e.

Trade Receivable $9,800 (debit)

Revenue $9,800 (credit)

f.

Cash $7,500 (debit)

Revenue $7,500 (credit)

g.

Trade Payable $1,200 (debit)

Cash $1,200 (credit)

h.

Wages $3,425 (debit)

Cash $3,425 (credit)

i.

Cash $7,900 (debit)

Trade Receivables $7,900 (credit)

j.

Capital $1,875 (debit)

Cash $1,875 (credit)

Required 2.

Cash  = $14,600  (debit)

Capital =  $16,125 (credit)

Equipment = $27,000 (debit)

Note Payable = $17,000 (credit)

Rent Expense = $2,300 (debit)

Supplies = $1,500 (debit)

Trade Payable =  $300 (credit)

Trade Receivable  = $1,900 (debit)

Revenue  = $17,300 (credit)

Wages =  $3,425 (debit)

Required 3.

                                 Debit               Credit

Cash                       $14,600  

Capital                                             $16,125

Equipment            $27,000

Note Payable                                 $17,000

Rent Expense        $2,300

Supplies                  $1,500

Trade Payable                                   $300

Trade Receivable   $1,900

Revenue                                        $17,300

Wages                    $3,425

Totals                     $50,725         $50,725

Explanation:

Account Balance Calculations :

Cash = $18,000 - $10,000 - $2,300 + $7,500 - $1,200 - $3,425 + $7,900 -$1,875 = $14,600  (debit)

Capital = $18,000 - $1,875 = $16,125(credit)

Equipment = $27,000 (debit)

Cash =  (credit)

Note Payable = $17,000 (credit)

Rent Expense = $2,300 (debit)

Supplies = $1,500 (debit)

Trade Payable = $1,500 - $1,200 = $300 (credit)

Trade Receivable = $9,800 - $7,900 = $1,900 (debit)

Revenue = $9,800 + $7,500 = $17,300(credit)

Wages =  $3,425 (debit)