Question

1. On December 1, Sylvia Workman started a haireutting business called Expressions. She invested $10,000 cash and $15,000 of equipment in the company 2. On December 1, Expressions purchased with cash a one-year insurance policy for the business. It cost $1200. 3. On December 2, Expressions paid $600 cash for furniture for the shop. 4.On December 3, Expressions paid $500 cash to rent space in a strip mall for December. 5. On December 4, it purchased $1200 of equipment on credit for the shop (using a long-term note payable) 6. On December 5, Expressions opened for business. Cash received from services provided in the first week and a half of business (ended December 15) is $825. 7. On December 15, it provided $100 of haircutting services on account. 8. On December 17, it received a S100 check for services previously rendered on account. 9. On December 17, it paid S125 to an assistant for working during the 10. 11. 12. grand opening. Cash received from services provided during the second half of December is $930. On December 31, it paid a $400 installment toward principal on the note payable entered into on December 4 On December 31, Workman made a $900 cash withdrawal for personal use A. Prepare journal entries for the transactions listed above. B. Post each entry to a General Ledger account. C. Prepare a trial balance as of December 31s.

Answer 1

Ans- Journal Entries

Date	Account	Debit	Credit
Dec.1	Cash A/c Dr.	10,000
	Equipment A/c Dr.	15,000
	Sylvia Capital a/c		25,000
Dec. 1	Prepaid Insurance A/c Dr.	1,200
	Cash A/c		1,200
Dec.2	Furniture A/c Dr.	600
	Cash A/c		600
Dec.3	Rent Expenses A/c Dr.	500
	Cash A/c		500
Dec.4	Equipment A/c Dr.	1,200
	Long Term Note Payable		1,200
Dec.15	Cash A/c Dr.	825
	Service Revenue A/c		825
Dec.15	Accounts Receivable A/c Dr.	100
	Service Revenue A/c		100
Dec. 17	Cash A/c Dr.	100
	Accounts Receivable A/c		100
Dec.31	Cash A/c Dr.	930
	Service Revenue A/c		930
Dec.31	Long Term Note Payable A/c Dr.	400
	Cash A/c		400
Dec.31	Drawings A/c Dr.	900
	Cash A/c		900

General Ledger Accounts

	Cash
Dec.1825	10,000	Dec.1	1,200
15	825	2	600
17	100	3	500
31	930	31	1300
31 End Bal.	8,255
	Equipment
Dec.1	15,000
4	1,200
Dec.31 End Bal.	16,200
	Accounts Receivable
Dec.15	100	Dec.17	100
	Furniture
Dec.2	600
Dec.31 End Bal.	600
	Long Term Note Payable
Dec.31	400	Dec.4	1,200
		Dec.31 End Bal.	800
	Capital Sylvia
Dec.31	900	Dec.1	25,000
		Dec.31 End Bal.	24,100
	Prepaid Insurance
Dec.1	1,200	Dec.31	1,200
Dec.31 End Bal.	1,200
	Rent Expenses
Dec.3	500	Dec.31	500
	Service Revenue
Dec.31	1,855	Dec.15	825
		15	100
		31	930
Dec.31 End Bal.	1,855

Trial Balance

Account	Debit	Credit
Cash	8,255
Equipment	16,200
Furniture	600
Prepaid Insurance	1,200
Long- Term Note Payable		800
Capital		24,100
Service Revenue		1,855
Rent	500
Total	$26,755	$26,755