Question

Ashley Somers owns San Diego Art Company, a firm providing designs for advertisers, market analysts, and others. On July 1, the business's general ledger showed the following normal account balances:

Transaction Analysis and Trial Balance Ashley somers owns San Diego Art Company, a firm providing designs for advertisers, market analysis, and others. On the business's general ledger showed the following normal account balances 111100 AD Payable 21.300 Total Libes and Stockholders Buy 2.500 The following transactions occurred during the month of Pad dut on the non -bennote payat a utenfor 10 Received invoice for ydering to be paid in 100 accounts with e nt Dividends Service Restamed Rent Expens e s Expense every Expert Advert er a. Set up accounts for the generale steps and Suppress . Prepare a trial balance as of July 31 ly balances and enter the beginning balance. A provide the following cont e s and record the w o n the appropriate account

Answer 1

Preparing General Journal:-

SAN DIEGO ART COMPANY

General Journal

July 31

Date	Accounts	Debit	Credit
July 1	Rent Expense	$1,470
	Cash		$1,470
2	Cash	$8,900
	Accounts Receivable		$8,900
3	Notes Payable	$3,300
	Cash		$3,300
4	Accounts Receivable	$20,350
	Service Fees Earned		$20,350
5	Cash	$2,000
	Service Fees Earned		$2,000
6	Accounts Payable	$2,500
	Cash		$2,500
7	Cash	$15,550
	Accounts Receivable		$15,550
8	Delivery Expense	$1,200
	Cash		$1,200
9	Salaries Expense	$5,400
	Cash		$5,400
10	Advertising Expense	$1,400
	Accounts Payable		$1,400
11	Utilities Expense	$1,150
	Cash		$1,150
12	Dividends	$2,800
	Cash		$2,800
13	Supplies Expense	$3,060
	Accounts Payable		$3,060
14	Equipment	$5,100
	Cash		$5,100

Posting into Appropriate Accounts:-

Cash

Date	Debit	Credit	Balance
Beg. Bal.	$11,300		$11,300
(1)		$1,470	$9,830
(2)	8,900		$18,730
(3)		3,300	$15,430
(5)	2,000		$17,430
(6)		2,500	$14,930
(7)	15,550		$30,480
(8)		1,200	$29,280
(9)		5,400	$23,880
(11)		1,150	$22,730
(12)		2,800	$19,930
(14)		5,100	$14,830
Balance	$14,830

Accounts Receivable

Beg. Bal.	$10,600		$10,600
(2)		$8,900	$1,700
(4)	20,350		$22,050
(7)		15,550	$6,500
Balance	$6,500

Equipment

(14)	$5,100		$5,100
Balance	$5,100

Notes Payable

Beg. Bal.		$5,800	$5,800
(3)	$3,300		$2,500
Balance		$2,500

Accounts Payable

Beg. Bal.		$2,400	$2,400
(6)	$2,500		($100)
(10)		1,400	$1,300
(13)		3,060	$4,360
Balance		$4,360

Common Stock

Beg. Bal.		$10,900	$10,900
Balance		$10,900

Retained Earnings

Beg. Bal.		$2,800	$2,800
Balance		$2,800

Dividends

(12)	$2,800		$2,800
Balance	$2,800

Service Fees Earned

(4)		$20,350	$20,350
(5)		2,000	$22,350
Balance		$22,350

Rent Expense

(1)	$1,470		$1,470
Balance	$1,470

Salaries Expense

(9)	$5,400		$5,400
Balance	$5,400

Delivery Expense

(8)	$1,200		$1,200
Balance	$1,200

Advertising Expense

(10)	$1,400		$1,400
Balance	$1,400

Utilities Expense

(11)	$1,150		$1,150
Balance	$1,150

Supplies Expense

(13)	$3,060		$3,060
Balance	$3,060

Preparing Trial Balance:-

SAN DIEGO ART COMPANY

Trial Balance

July 31

Accounts	Debit	Credit
Cash	$14,830
Accounts Receivable	6,500
Equipment	5,100
Notes Payable		$2,500
Accounts Payable		4,360
Common Stock		10,900
Retained Earnings		2,800
Dividends	2,800
Service Fees Earned		22,350
Rent Expense	1,470
Salaries Expense	5,400
Delivery Expense	1,200
Advertising Expense	1,400
Utilities Expense	1,150
Supplies Expense	3,060
Totals	$42,910	$42,910