Question P2-2A Page 82

Journal
Date Apr 1 Apr 2 Apr 3 Apr 10 Apr 11 Apr 20 Apr 30 Apr 30 Account Titles and Explanation Cash Capital (Being invested) Rent expenses Cash (Pay for rent) Supplies Account Payable (Purchase supplies on account) Account receivable Revenue (Provide service on account) Cash Unearned revenue (receive cash for an unearned service) Cash Service revenue (provide service) Salary expenses Cash (Pay for salaries) Account payable Cash (pay for account payable) Ledger Accounts Cash Capital Rent expenses Unearned revenue Service revenue Salaries expenses Account payable Debit 40000 1000 2100 2400 1600 Debit 38100 Credit 1000 Amount 40000 39000 40000 42100 39700 38100 Debit 40000 1000 1000 4000 4000 5100 5100 1000 1000 2100 2100 2400 2400 1600 1600 Credit 40000

Capital Debit Cash Credit 40000 Ledger Accounts Rent expenses Debit 1000 Debit 1000 Credit Amount 1000 Credit 40000 Amount 40000

Cash

Ledger Accounts Supplies Debit 4000 Debit 4000 Account receivable Debit 5100 Debit 5100 Service revenue Debit Account receivable Cash Credit 7200 Unearned revenue Debit Cash Credit 1000 Salaries expenses Debit 2400 Debit 2400 Credit Amount 4000

Account payable

Credit

Service revenue

Amount 5100

Credit 5100 2100

Amount 5100 7200

Credit 1000

Amount 1000

Credit

Cash

Amount 2400

Account payable Debit Supplies Cash 1600 Credit 2400 Trial Balance Debit Cash 3800 Rent expenses 1000 Salaries expenses 4000 Supplies 4000 Account receivable 5100 50600

Credit 4000

Amount 4000 2400

Credit Service revenue 7200 Capital 40000 Unearned revenue 1000 Account payable 2400 Total 50600

Question P2-3A Page 84

Journal
Date May 1 May 1 May 1 Account Titles and Explanation Cash Capital (Being Cash invested in business) Prepaid rent Cash (Pay for 1 year rent in advance) Equipment Cash Account payable (Purchase equipment paying 10000 cash and 20000 on account) Prepaid insurance Cash (Paid one year policy) Office supplies Cash (Purchase office supplies) Office supplies Account payable (Purchase office supplies on account) Cash Account receivable Revenue (Receive 28000 on service provided and 12000 on account) Account payable Cash (Pay for supplies on account payable) Cash Account receivable (Received on account receivable) Expenses Cash (pay salaries for the month) Debit 50000 Credit 50000 24000 24000 30000 10000 20000 1800 1800 500 500 1500 1500 28000 12000 40000 400 400 3000 3000 5600 5600

May 1 May May May

May May May

Ledger Accounts Cash Capital Prepaid rent Equipment Prepaid insurance Office supplies Revenue Account payable Account receivable Expenses Debit 50000 Credit 24000 10000 1800 500 28000 400 3000 5600 Debit 38700 Capital Debit Cash Credit 50000 Prepaid rent Debit 24000 Debit 24000 Equipment Debit 10000 20000 Debit 30000 Prepaid insurance Debit 1800 Debit 1800 Office supplies Debit 500 1500 Credit 50000 Amount 50000 Amount 50000 26000 16000 14200 13700 41700 41300 44300 38700

Credit

Cash

Amount 24000

Credit

Cash Account payable

Amount 10000 30000

Credit

Cash

Amount 1800

Credit

Cash Account payable

Amount 500 2000

Debit 2000 Account payable Debit Equipments Office supplies Cash

Credit 20000 1500

400 Credit 22100 Account receivable Debit 12000 Debit 9000 Expenses Debit 5600 Debit 5600 Revenue Debit

Amount 20000 22500 21100

Credit 3000

Revenue Cash

Amount 12000 9000

Credit

Cash

Amount 5600

Cash Account receivable Credit 40000 Trial Balance Debit Cash 38700 Prepaid rent 24000 Equipment 30000 Prepaid insurance 1800 Office supplies 2000 Account receivable 9000 Expenses 5600 111100

Credit 28000 12000

Amount 28000 40000

Credit Capital 50000 Account payable 21100 Revenue 40000

Total 111100