I need to journalize these transactions. Trying to keep thesebalanced is difficult, and I've been confused as to what accountsto debit/credit. If you could help me fill this out, that would begreatly appreciated.
For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions duringDecember:
1st AaronJones invested the following assets in the business: cash, $50,000;supplies,
$10,000; and office equipment, $30,000. Mr. Jones received stockin an
amount equal to his investment in the corporation.
2nd Paid $9,000for rent for December 20X1 through February 28, 20X2.
3rd Paid$12,000 for a one year premium on property and casualty insurance.The
policy covers the period December 1, 20X1 to November 30,20X2.
4th Received $16,000 cash from a client as an advance payment forservices to be
performed in the future.
5th Purchased additional office equipment on account from Payne Companyfor $10,000.
10th Paid $7,500 for anewspaper advertisement that ran in todayâs paper.
11th Paid Payne Company$3,000 for part of the debt incurred on December 5.
12th Billed clients forservices performed on account, $5,800.
17th Received cash paymentfrom client for services performed on this date, $14,000.
18th Paid $6,000 forsupplies.
20th Billed clients forservices performed on account, $15,000.
24th Received cash paymentfrom client for services performed on this date, $2,000.
25th Received cash fromclients as payment on account, $3,000.
30th Paid $750 forutilities for December.
31st Paid cash dividend of$5,000.
These are the accounts we have:
PROGRESS CONSULTING: Chart of Accounts
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Rent
17 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation
21 Accounts Payable
22 Wages Payable
23 Unearned Revenues
31 Common Stock
34 Retained Earnings
35 Dividends
37 Income Summary
41 Service Revenues
51 Insurance Expense
52 Advertising Expense
53 Rent Expense
55 Supplies Expense
57 Depreciation Expense
59 Utilities Expense
60 Wage Expense
Date
Description
Debit
Credit
Dec
1
Cash
50,000
1
Supplies
10,000
1
Office Equipment
30,000
1
Common Stock
90,000
2
I need to journalize these transactions. Trying to keep thesebalanced is difficult, and I've been confused as to what accountsto debit/credit. If you could help me fill this out, that would begreatly appreciated.
For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions duringDecember:
1st AaronJones invested the following assets in the business: cash, $50,000;supplies,
$10,000; and office equipment, $30,000. Mr. Jones received stockin an
amount equal to his investment in the corporation.
2nd Paid $9,000for rent for December 20X1 through February 28, 20X2.
3rd Paid$12,000 for a one year premium on property and casualty insurance.The
policy covers the period December 1, 20X1 to November 30,20X2.
4th Received $16,000 cash from a client as an advance payment forservices to be
performed in the future.
5th Purchased additional office equipment on account from Payne Companyfor $10,000.
10th Paid $7,500 for anewspaper advertisement that ran in todayâs paper.
11th Paid Payne Company$3,000 for part of the debt incurred on December 5.
12th Billed clients forservices performed on account, $5,800.
17th Received cash paymentfrom client for services performed on this date, $14,000.
18th Paid $6,000 forsupplies.
20th Billed clients forservices performed on account, $15,000.
24th Received cash paymentfrom client for services performed on this date, $2,000.
25th Received cash fromclients as payment on account, $3,000.
30th Paid $750 forutilities for December.
31st Paid cash dividend of$5,000.
These are the accounts we have:
PROGRESS CONSULTING: Chart of Accounts
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Rent
17 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation
21 Accounts Payable
22 Wages Payable
23 Unearned Revenues
31 Common Stock
34 Retained Earnings
35 Dividends
37 Income Summary
41 Service Revenues
51 Insurance Expense
52 Advertising Expense
53 Rent Expense
55 Supplies Expense
57 Depreciation Expense
59 Utilities Expense
60 Wage Expense
Date | Description | Debit | Credit | ||
Dec | 1 | Cash | 50,000 | ||
1 | Supplies | 10,000 | |||
1 | Office Equipment | 30,000 | |||
1 | Common Stock | 90,000 | |||
2 | |||||
