Record (journalize) transactions in the books) Doherty Tree Cellular, Inc.,
completed the following transactions during April 2012, its first month of operations:
Apr 1
Received $19,800 and issued common stock.
2
Purchased $200 of office supplies on account.
4
Paid $14,300 cash for land to use as a building site.
6
Performed service for customers and received cash of $2,600.
9
Paid $100 on accounts payable.
17
Performed service for UFax on account totaling $1,900.
23
Collected $100 from UFax on account.
30
Paid the following expenses: salary, $1,900; rent, $1,300.
1.Record the transactions in the journal of Doherty Tree Cellular, Inc. Key transactions by date and include an explanation for each entry.
CLASS, LETS TAKE RECORDING STEP 1 STEP FURTHER - THE TRIAL BALANCE
Now that we know what the accounting equation is and we have some experience with Journal Entries.
Letâs review the process and take the recording process one step further.
STEP 1) Analyze transaction: As an actual accountant, we determine if a transaction should be recorded by analyzing source documents.
For example: If the Company makes a sale; they will complete a sales document (or sales
tape is generated). If the Company purchases something a purchase invoice is forwarded to Accounting. There is a different type of source documents for different types of transactions.
Note: as an accountant a large part of the battle is making sure there is a source document for all transactions and that all departments capture and forward these documents to Accounting!
STEP 2) Accounting prepares journal entry: for each transaction based on GAAP. (Mostly using the constraints, assumptions, principles we've discussed: materiality, conservatism, matching, revenue recognition, etc).
The entry is entered into a Journal for those types of Transactions (There is a Sales Journal, A/P Journal for purchases, Payroll journal for payroll related entries, General Journal for misc. entries., etc.
Journal entries are made in the proper form, and include: date, description, indent of credit side of each entry.
STEP 3) The Journal entry is posted to General ledger; which includes all activity for all accounts.
However, the recording process is not over. Letâs talk about the trial balance. Please answer ALL however only post ONE question at a time to allow more to participate.
1) Why do we prepare it?
Record (journalize) transactions in the books) Doherty Tree Cellular, Inc.,
completed the following transactions during April 2012, its first month of operations:
| Apr 1 | Received $19,800 and issued common stock. |
| 2 | Purchased $200 of office supplies on account. |
| 4 | Paid $14,300 cash for land to use as a building site. |
| 6 | Performed service for customers and received cash of $2,600. |
| 9 | Paid $100 on accounts payable. |
| 17 | Performed service for UFax on account totaling $1,900. |
| 23 | Collected $100 from UFax on account. |
| 30 | Paid the following expenses: salary, $1,900; rent, $1,300. |
1.Record the transactions in the journal of Doherty Tree Cellular, Inc. Key transactions by date and include an explanation for each entry.
CLASS, LETS TAKE RECORDING STEP 1 STEP FURTHER - THE TRIAL BALANCE
Now that we know what the accounting equation is and we have some experience with Journal Entries.
Letâs review the process and take the recording process one step further.
STEP 1) Analyze transaction: As an actual accountant, we determine if a transaction should be recorded by analyzing source documents.
For example: If the Company makes a sale; they will complete a sales document (or sales
tape is generated). If the Company purchases something a purchase invoice is forwarded to Accounting. There is a different type of source documents for different types of transactions.
Note: as an accountant a large part of the battle is making sure there is a source document for all transactions and that all departments capture and forward these documents to Accounting!
STEP 2) Accounting prepares journal entry: for each transaction based on GAAP. (Mostly using the constraints, assumptions, principles we've discussed: materiality, conservatism, matching, revenue recognition, etc).
The entry is entered into a Journal for those types of Transactions (There is a Sales Journal, A/P Journal for purchases, Payroll journal for payroll related entries, General Journal for misc. entries., etc.
Journal entries are made in the proper form, and include: date, description, indent of credit side of each entry.
STEP 3) The Journal entry is posted to General ledger; which includes all activity for all accounts.
However, the recording process is not over. Letâs talk about the trial balance. Please answer ALL however only post ONE question at a time to allow more to participate.
1) Why do we prepare it?
Related questions
During March, the business engaged in the followingtransactions, All figures are GST (GST is 15%)inclusive where applicable:
Journalise each transaction. Key journal entries bytransaction letter, using the format below:
General Journal
Transactions | Accounts | Debit ($) | Credit ($) | |
| ||||
1 March: Borrowed $45,000 from the bank and signed a billpayable in the name of the business.
2 March: Paid cash of $40,000 to acquire a motor vehicle.
4 March: Performed service for a customer and received cash of$5,000.
10 March: Purchased supplies on credit, $300.
14 March: Performed customer service and earned revenue oncredit, $2,600.
15 March: Paid $1,200 on account.
16 March: Paid the following cash expense: advertising, $3,000;rent, $1,500; and computer repair, $400.
22 March: Received $3,100 on account.
26 March: Received a $200 electricity and gas bill that will bepaid next month.
28 March: Harper withdrew $1,800 for personal use.
On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.
| Debits | Credits | |||
| Cash | $4,795 | Accumulated depreciation | $1,000 | |
| Accounts Receivable | 2,320 | Accounts Payable | 6,800 | |
| Supplies | 1,000 | Unearned Service Revenue | 400 | |
| Equipment | 40,000 | Salaries Payable | 550 | |
| Common Stock | 11,000 | |||
| Retained Earnings | 28,365 | |||
| $48,115 | $48,115 |
During November the followingsummary transactions were completed.
Nov. 8 | Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November. |
10 | Received $1,400 cash from customers in payment of account. |
11 | Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30. |
12 | Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000. |
15 | Received credit from Midwest Wholesale Supply for merchandisereturned $200. |
19 | Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12. |
20 | Paid Midwest Wholesale Supply in full, less discount. (Donâtforget the return on the 15th.) |
22 | Received $1,300 cash for services performed in November. |
25 | Purchased equipment on account $3,000. |
27 | Purchased supplies on account $1,300. |
28 | Paid creditors $2,500 of accounts payable due. |
29 | Paid November rent $300. |
29 | Paid salaries $1,100. |
29 | Performed services on account and billed customers for servicesprovided $1,900. |
29 | Received $550 from customers for services to be provided in thefuture. |
Adjustment data:
1. | Supplies on hand are valued at $1,600. |
2. | Accrued salaries payable as of 11/30 are $500. |
3. | Depreciation for the month is $750. |
4. | $650 of the unearned service revenue has not been earned bymonth end. |
Instructions
| Print out the solution pages for thegeneral ledger, journal and worksheet that follow and enter thefollowing transactions (might be a good idea to use pencil): Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page. Enter the November transactions (not adjusting entries untilrequirement âeâ) in the general journal provided on the nextpage. Post to the ledger accounts. You will need to add someaccounts. Prepare an unadjusted trial balance at November 30 and enter onthe worksheet. Then complete the other worksheet columns. (Seebelow.) Worksheetrequirement: Using your unadjusted trial balance fromabove instructions and the data for adjusting entries, prepare a 10column worksheet similar to the one in the chapter 4 appendix ofyour text. Journalize and post adjusting entries. Prepare a multi-step income statement and aretained earnings statement for November and aclassified balance sheet at November 30. Use yourown paper. (No formatted sheets are supplied as we did for theother items.) These statements must be properlytitled/formatted. Journalize and post closing entries. |
Required
---------------------
1. Post to the ledger.
2. Prepare the trial balance of Harper Service as at 31March 2018
--------
During March, the business engaged in the followingtransactions, All figures are GST (GST is15%)inclusive where applicable:
Journalise each transaction. Key journal entries bytransaction letter, using the format below:
General Journal
Transactions | Accounts | Debit ($) | Credit ($) | |
| ||||
1 March: Borrowed $45,000 from the bank and signed a billpayable in the name of the business.
2 March: Paid cash of $40,000 to acquire a motor vehicle.
4 March: Performed service for a customer and received cash of$5,000.
10 March: Purchased supplies on credit, $300.
14 March: Performed customer service and earned revenue oncredit, $2,600.
15 March: Paid $1,200 on account.
16 March: Paid the following cash expense: advertising, $3,000;rent, $1,500; and computer repair, $400.
22 March: Received $3,100 on account.
26 March: Received a $200 electricity and gas bill that will bepaid next month.
28 March: Harper withdrew $1,800 for personal use.
