Question

How do I record the transactions in a general journal?

TRANSACTIONS:

Date January I January I January 1 January 3 January 5 January 7 January 10 January 12 January 15 January 18 January 19 January 20 January 24 January 25 January 30 January 31 January 31 January 31 January 31

Transaction Owner, Tom Ford, invested $260,000 cash along with office equipment that had a $90,000 market value in exchange for 35,000 shares of $10 par value common stock in Celebrity Consultants, Inc. Purchased land and an office building for $140,000, of which $20,000 was attributable to the fair market value of the land. A $50,000 cash down payment was made and a 5% five-year note was signed for the balance. Interest and 20% of the principal will be paid annually on this date. (Assume a 360-day year for interest computation purposes.) Purchased a one-year insurance policy, effective January 1, for $2,400. Purchased office supplies of $3,600 on account from Office Depot. Established a petty cash fund of $400. Placed an order with the LA Times newspaper for advertising, which will run during January, February, and March. The advertising, which cost $1,800, was paid for on this date in order to obtain a lower price. Completed consulting job for Brad Pitt, and billed him total of $12,000, due in 30 days. Completed consulting job totaling $18,500 for Beyonce' Knowles, and collected $10,000 cash with the balance due in 30 days. Paid the semi-monthly payroll, which totaled $8,000, to the firm's workers, all of which are classified as independent contractors. Received $15,000 from Tiger Woods for 6 month's consulting services to begin February l . Paid Office Depot $2,500 on the account balance. Received $8,000 from Brad Pitt for services billed January 10th . Completed $5,000 consulting job for Taylor Swift and received full cash payment. Received $4,000 from Beyonce' Knowles for consulting services completed January 12. Received the January telephone bill from AT&T for $375, due Feb 15. Paid the payroll to firm's workers for the second half of January. Received utility bills for January due Feb 16, from SWEPCO for $360 & L.A. Water Utilities for $280. An audit of the petty cash fund determined the following:                 Receipts:               Postage                                  $ 24                                                 Office supplies                       38                                                 Misc. Exp.                             22                                 Currency and Coin                                  313 $2Q==$ Reimburse Petty Cash and record the entry from the information above. Declared & paid cash dividend of $. 10 per share to the shareholders of record on January 31. SUPPLEMENTAL ADJUSTING ENTRY INFORMATION: An inventory of office supplies was taken on January 31 & found that $2, 100 of supplies remained on hand. An invoice of $280 for repair of office equipment dated January 26 had not yet been recorded. The building will be depreciated on a straight-line basis over 30 years with no salvage value. The equipment will be depreciated on a straight-line basis over 10 years with no salvage value. Review accounts for other adjustments necessary at January 31 in addition to those indicated in items a - d.

Answer 1

			(Amount in $)
Date	Particulars	Debit	Credit
1)	Owner, Tom Ford, invested $260,000 cash along with office equipment that had a $90,000 market value in exchange for 35,000 shares of $10 par value common stock in Celebrity Consultants, Inc.
1-Jan	Cash A/c	260,000.00
	Office Equiptment a/c	90,000.00
	To Share Capital A/c (35000 Shares @ of $10 per shares)		350,000.00
	(Being 35000 Shares @ $10 per shares issued to owner Tom in exchange in Cash $ 260,000 & office equipment worth $90,000)
2)	Purchased land and an office building for $140,000, of which $20,000 was attributable to the fair market value of the land. A $50,000 cash down payment was made and a 5% five-year note was signed for the balance. Interest and 20% of the principal will be paid annually on this date. (Assume a 360-day year for interest computation purposes.)
5-Jan	Land and Office Building A/c	140000
	Cash A/c		50000
	To Loan on Purchase of Land & Building account		90000
	(Being Purchase of Land & Office building with down payment of $50K Balance payable yearly in 5 years in equal instalments @ annual interest @ 5%)
3)	Purchased a one-year insurance policy, effective January 1, for $2,400.
19-Jan	Insurance A/c	2,400
	To Cash A/c		2,400
	(Being Purchase of Insurance policy for 1 year)
4)	Purchased office supplies of $3,600 on account from Office Depot.
24-Jan	Office Supplies A/c	3600
	To Cash A/c		3600
	(Being purchase of Office Supplies worth $ 3600 in Cash)
5)	Established a petty cash fund of $400.
25-Jan	Petty Cash A/c	400
	To Cash A/c		400
	(Being Cash transferred to Establish petty cash fund for office expenses))
6)	Placed an order with the LA Times newspaper for advertising, which will run during January, February, and March. The advertising, which cost $1,800, was paid for on this date in order to obtain a lower price.
30-Jan	Advertisement Expenses A/c	600
	Prepaid Expense A/c	1200
	To Cash A/c		1800
	(Being cash paid towards Advertisement in LA Times News paper for Jan,Feb & March so Jan month Expenses is accounted P&L, Balance in Prepaid a/c)
7)	Completed consulting job for Brad Pitt, and billed him total of $12,000, due in 30 days.
31-Jan	Brad Pitt A/c	12000
	To Consultation Revenue A/c		12000
	(Being Consultation Revenue Recognised for Brad Pitt, due in 30 days )
8)	Completed consulting job totaling $18,500 for Beyonce' Knowles, and collected $10,000 cash with the balance due in 30 days.
31-Jan	Beyonce' Knowles	8500
	Cash A/c	10000
	To Consultation Revenue A/c		18500
	(Being Consultation Revenue Recognised for Beyonce Knowels, Received $ 10 k in cash balance due in 30 days)
9)	Paid the semi-monthly payroll, which totaled $8,000, to the firm's workers, all of which are classified as independent contractors.
31-Jan	Salary A/c	8000
	To		8000
	(Being Semi monthly Payroll paid to the firms worker)
10)	Received $15,000 from Tiger Woods for 6 month's consulting services to begin February l
31-Jan	Cash A/c	15000
	To Tiger Woods		15000
	(Being Cash Recived from Tiger woods towards advance for consulting services for 6 months)
11)	Received $8,000 from Brad Pitt for services billed January 10th
31-Jan	Cash A/c	8000
	To Brad Pitt A/c		8000
	(Being Cash Received from Brad Pitt towards services provided and billed on Jan 10th)
12)	Completed $5,000 consulting job for Taylor Swift and received full cash payment.
31-Jan	Cash A/c	5000
	To Consultation Revenue A/c		5000
	(Being Cash Received towards Consulting Job completion from Taylor Swift)
13)	Received $4,000 from Beyonce' Knowles for consulting services completed January 12.
31-Jan	Cash A/c	4000
	To Beyonce' Knowles A/c		4000
	(Being Cash Received from Beyonce' Knowles towards services provided and billed on Jan 12th)
	Assumed bill was raised on January 12th
14)	Received the January telephone bill from AT&T for $375, due Feb 15
31-Jan	Telephone Expenses A/c	375
	To AT & T Telephone Payable A/c		375
15)	Paid the payroll to firm's workers for the second half of January.
31-Jan	Salary A/c	8000
	To		8000
	(Being Semi monthly Payroll paid to the firms worker Second Half of January)
16)	Received utility bills for January due Feb 16, from SWEPCO for $360
31-Jan	Utility bills	360
	To Swepco Utilities Payable A/c		360
	(being utility Bills Payable)
17)	L.A. Water Utilities for $280
31-Jan	Utility bills	280
	To L.A. Water Utilities Payable A/c		280
	(being utility Bills Payable)