Question

E3-14 Here is the ledger for Keisler Co. Oct. 4 00 1,500 250 Common Stock Oct. 1 25 7,000 2,000 30 300 Cash i 7.000 Oct. 4 10 980 12 10 8,000 15 20 700 2,000 Accounts Receivable 6 800 Oct. 20 20920 Supplies 4 400 Oct. 31 31 500 Oct. 7 00 Oct. 30 Dividends 300 Service Revenue Oct. 6 Oct. 1 80 800 10 980 920 20 Equipment Oct. 3 3,000 Notes Payable | Oct. 10 Accounts Payable Oct. 121,500 | Oct. 3 Salaries and Wages Expense Oct. 31 500 Supplies Expense Oct. 31 180 Rent Expense Oct. 15 250 8,000 3,000 Instructions (a) Reproduce the journal entries for only the transactions that occurred on October 1, 10, and 20, and provide explanations for each. (b) Prepare a trial balance at October 31, 2014. (Hint: Compute ending balances of T-accounts first.)

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Oct 1	Cash	7000
	Common Stock		7000
	(To record common Stock)
Oct 10	Cash	980
	Service revenue		980
	(To record service revenue)
Oct 10	Cash	8000
	Notes payable		8000
	(To record borrow)
Oct 20	Cash	700
	Account receivable		700
	(To record cash collection)

Trial balance

	Debit	Credit
Cash	15730
Account receivable	1020
Supplies	220
Equipment	3000
Account payable		1500
Notes payable		8000
Common Stock		9000
Dividend	300
Service revenue		2700
Salaries and wages expense	500
Supplies expense	180
Rent expense	250
total	21200	21200