Based on the information given below, complete the stepsof journalizing.
Rex Consulting Services opened for business in January, 2005.The company maintains the following ledger accounts:
1.1 Cash account
1.2 Accounts receivable
1.3 Office supplies
2.1 Accounts payable
3.1 Capital stock
3.2 Retained earnings
4.1 Consulting revenue
5.1 Rent expenses
5.2 Utilities expenses
The company engaged in the following business activity inJanuary:
Jan 15: Invested capital of $50,000.
Jan 17: Paid $400 office rent for the remainder ofJanuary.
Jan 20: Purchased office supplies for $200. The supplies willlast for several months, and payment is not due until February15th.
Jan 25: Purchased office equipment for $15,000cash.
Jan 27: Performed consulting services and billed clients for$2,000. The entire amount will not be collected untilFebruary.
Jan 31: Recorded a $100 utilities expense. Payment is not dueuntil February 20th.
Guidelines for the assignment:
* Analyze and identify the accounts.
* Classify the accounts.
* Apply the rules of debit and credit.
* Create a T account.
* Pass the journal entry.
Record each of the above transactions in a general journalform.
Part 2:
Write down all the steps required for journalizing thefollowing business transactions:
* On January 5th, Mr. David took $20,000 from his personalsavings and deposited it to start a business account in the name ofDavid Transport Service.
* On January 6, David Transport Service issued check No. 506for $2,000 to buy a computer system.
* On January 10, David Transport Service paid $100 to Bluecompany for telephone charges. Memorandum 5.
* On January 15, David Transport Service mailed check No. 507for $500 toward the month
Based on the information given below, complete the stepsof journalizing.
Rex Consulting Services opened for business in January, 2005.The company maintains the following ledger accounts:
1.1 Cash account
1.2 Accounts receivable
1.3 Office supplies
2.1 Accounts payable
3.1 Capital stock
3.2 Retained earnings
4.1 Consulting revenue
5.1 Rent expenses
5.2 Utilities expenses
The company engaged in the following business activity inJanuary:
Jan 15: Invested capital of $50,000.
Jan 17: Paid $400 office rent for the remainder ofJanuary.
Jan 20: Purchased office supplies for $200. The supplies willlast for several months, and payment is not due until February15th.
Jan 25: Purchased office equipment for $15,000cash.
Jan 27: Performed consulting services and billed clients for$2,000. The entire amount will not be collected untilFebruary.
Jan 31: Recorded a $100 utilities expense. Payment is not dueuntil February 20th.
Guidelines for the assignment:
* Analyze and identify the accounts.
* Classify the accounts.
* Apply the rules of debit and credit.
* Create a T account.
* Pass the journal entry.
Record each of the above transactions in a general journalform.
Part 2:
Write down all the steps required for journalizing thefollowing business transactions:
* On January 5th, Mr. David took $20,000 from his personalsavings and deposited it to start a business account in the name ofDavid Transport Service.
* On January 6, David Transport Service issued check No. 506for $2,000 to buy a computer system.
* On January 10, David Transport Service paid $100 to Bluecompany for telephone charges. Memorandum 5.
* On January 15, David Transport Service mailed check No. 507for $500 toward the month
Related questions
Elaine Consulting incorporated on February 1, current year. Thecompany engaged in the following transactions during its firstmonth of operations.
| Feb. | 1 | Issued capital stock inexchange for $800,000 cash. | |
| Feb. | 5 | Borrowed $100,000 from thebank by issuing a note payable. | |
| Feb. | 8 | Purchased land, building, andoffice equipment for $750,000. The value of the land was $150,000,the value of the building was $540,000, and the value of the officeequipment was $60,000. The company paid $200,000 cash and issued anote payable for the balance. | |
| Feb. | 11 | Purchased office supplies for$800 on account. The supplies will last for several months. | |
| Feb. | 14 | Paid the local newspaper $500for a full-page advertisement. The ad will appear in print onFebruary 18. | |
| Feb. | 20 | Several of the inkjet printercartridges that Elaine purchased on February 11 were defective. Thecartridges were returned and the office supply store reducedElaineâs outstanding balance by $200. | |
| Feb. | 22 | Performed consulting servicesfor $14,000 cash. | |
| Feb. | 24 | Billed clients $16,000. | |
| Feb. | 25 | Paid salaries of $12,000. | |
| Feb. | 28 | Paid the entire outstandingbalance owed for office supplies purchased on February 11. |
A partial list of the account titles used by the companyincludes the following
| Cash | Notes Payable |
| Accounts Receivable | Accounts Payable |
| Office Supplies | Capital Stock |
| Land | Client Service Revenue |
| Building | Advertising Expense |
| Office Equipment | Salaries Expense |
a. Prepare journal entries for the abovetransactions.
b. Post each entry to the appropriate ledgeraccounts.
c. Prepare a trial balance dated February 28,current year. Assume accounts with zero balances are not includedin the trial balance.
Assignment Choice #1: TrialBalance
Listed below are the transactions for Hunter Marketing, Inc. forthe month of July:
| July 1 | Hunter begins his marketing company and invests $50,000cash. | |
| July 5 | Purchases computers and office equipment on account fromOfficeMax for $10,250. | |
| July 6 | Pays rent for office space $800 for the month. | |
| July 6 | Employs a secretary, Mary Jones. | |
| July 8 | Purchases office supplies for cash at $960. | |
| July 9 | Receives $2,430 from customer for services performed. | |
| July 11 | Pays miscellaneous office expenses $375. | |
| July 13 | Bills customers $4,900 for services performed. | |
| July 15 | Pays Office Max $3,500 on account. | |
| July 18 | Withdraws $2,000 from business for personal use. | |
| July 20 | Hunter appeared on the cover of a local newsmagazine. Relatedarticle extolled Hunterâs expertise as well as the new companyâsvalues and customer service that it brings to companies in thecommunity. This exposure led to increased inquiries fromprospective clients, and Hunter hopes this will increase futuresales. | |
| July 20 | Receives $1,900 from customers on account. | |
| July 23 | Bills customers $6,320 for services performed. | |
| July 30 | Pays the following expenses in cash: office salaries $2,300 andutilities $400. |
Use the transactions to complete the following tasks:
Enter the transactions shown above in appropriate general ledgeraccounts (use T-accounts). Use the following ledger accounts: Cash,Accounts Receivable, Supplies on Hand, Office Equipment,Accumulated Depreciation, Accounts Payable, Hunter-Capital, ServiceRevenue, Rent Expense, Miscellaneous Office Expense, OfficeSalaries Expense, Supplies Expense, Utilities Expense, DepreciationExpense and Income Summary.
Prepare an unadjusted trial balance.
Record depreciation using a five-year life on the officeequipment, the straight-line method, and no salvage value. Round towhole numbers. Also, record an adjustment for office supplies usedin the amount of $510.
Prepare an adjusted trial balance.
Prepare an income statement, a statement of retained earnings,and an unclassified balance sheet.
Close the ledger.
Prepare a post-closing trial balance.
Which transaction do you think had the most significant economicimpact on the Company? Why are economically relevant events notrecorded in the financial records?
