Question

Selected activity of Mason Consulting Services.

Date Transactions

2019

Sept. 1 Zack Mason invested $52,000 in cash to start the firm.

4 Purchased office equipment for $5,700 on invoice 9823, payable in 30 days.

16 Purchased an automobile that will be used to visit clients; issued check 1001 for 13, 700 in full payment

20 Purchased supplies for $440; paid immediately with check 1002.

23 Returned damaged supplies for a cash refund of $130.

30 Issued check 1003 for $3300 to Den, Inc., as payment on 9823

30 Withdrew $2,200 in cash for personal expenses.

30 Issued check 1004 for $1,300 to pay the rent for September.

30 Performed services for $2350 in cash

30 Paid $395 for monthly telephone bill, check 1005

Post the above transactions into the appropriate ledger accounts

Answer 1

Mason Consutling Services Journal Enteries Date Particulars 1.9.2019 Cash a/c Dr. To Zack Mason, Capital (Capital Invested) Debit in $ Credit in $ 52000 52000 4.9.2019 5700 Office Equipment a/c Dr. To Accounts Payable (Office Equipment on credit) 5700 13700 16.9.2019 Automobile a/c Dr. To Cash (Automobile purchased) 13700 20.9.2019 Supplies a/c Dr. To Cash (Supplies purchased) 440 Dr. 130 23.9.2019 Cash a/c To Supplies (Supplies returned) 130 3300 30.9.2019 Accounts Payable a/c Dr. To Cash (Creditors paid) 3300 2200 30.9.2019 Zack Mason, Withdrawals a/c Dr. To Cash (Cash drawn for personal use) 2200 Dr. 1300 30.9.2019 Rent expense a/c To Cash (Rent paid) 1300 2350 30.9.2019 Cash a/c Dr. To Fees Income (Services provided for cash) 2350 395 30.9.2019 Telephone Expense a/c Dr. To Cash (Telephone expense paid) 395

Zack Mason, Capital Date Debit in $ 1.9.2019 Credit in $ 52000 Balance 52000 Cash Account No. 101 Date Debit in $ Credit in $ Balance 1.9.2019 52000 52000 16.9.2019 13700 38300 20.9.2019 440 37860 23.9.2019 130 37990 30.9.2019 3300 34690 30.9.2019 2200 32490 30.9.2019 1300 31190 30.9.2019 2350 33540 30.9.2019 33145 Zack Mason, withdrawals Account No. 302 Debit in $ Credit in $ Balance 30.9.2019 2200 2200 Fees Income Date Debit in $ 30.9.2019 Account No. 401 Credit in $ Balance 2350 2350 Supplies Account No. 121 Date Debit in $ Credit in $ Balance 20.9.2019 440 440 23.9.2019 130 310 Rent expense Account No. 511 Date Debit in $ Credit in $ Balance 30.9.2019 1300 1300 Equipment Account No. 131 Date Debit in $ Credit in $ Balance 4.9.2019 5700 5700 Telephone Expense Date Debit in $ 30.9.2019 Account No. 517 Credit in $ Balance 395 395 Automobile Account No. 141 Date Debit in $ Credit in $ Balance 16.9.2019 13700 13700 Accounts Payable Account No. 202 Date Debit in $ Credit in $ Balance 4.9.2019 5700 5700 30.9.2019 3300 2400