Question

This problem is based on the transactions for the Eco Build Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded Dec. 1 on December 1, Nina Miller forms a consulting business, named Ece Bulld. Eco Build receives $56,000 cash froe Nina Miller as an owner contribution. Dec. 2 Eco Build pays $3,500 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec.3 Eco Build pays $40,000 cash for equipment. Dec. 4 Eco Build purchases $9,100 of supplies on credit from supplier, CalTech Supply Dec. 5 Eco Build provides consultine services and immediately collects 55,500 cash. Dec. 6 Eco Build pays $2,500 cash for December rent. Dec. 7 Eco Build pays $2,000 cash for employee salary. Dec. 8 Eco Build provides consulting services of $3,100 and rents its test facilities for $1,000. The customer is billed 54,900 for these services. Dec. 9 Eco Build receives 54,900 cash from the client billed on December 8. Dec. 10 Eco Build pays CalTech Supply 52,200 cash as partial payment for its December 4 $9,100 purchase of supplies. Dec. 11 Nina Miller withdraws $700 cash from Eco Build for personal use. Dec. 12 Eco Build receives $3,500 cash in advance of providing consulting services to customer. The company's policy is to record fees collected in advance in a balance sheet account. Dec. 13 Eco Build pays $3,700 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 Eco Build pays $1,420 cash for supplies. Dec. 15 Eco Build pays $1,605 cash for December utilities expense. Dec. 16 Eco Build pays 51,350 cash in employee salary for work performed in the latter part of December Requirement General Journal General Ledger Trial Balance Income Statement St Owners Balance Sheet Equity Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the Eco Build Company, entering the debits before the credits. Each transaction will automatically be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". View transaction list Journal entry worksheet 2 3 4 5 6 7 8 .... On December 1, Nina Miller forms a consulting business, named Eco Build. Eco Build receives $56,000 cash from Nina Miller as an owner contribution Notes Enter debits before credits. Account Title Debit Credit Date Dec 01 Prey 1 of 1 Hii Next

Answer 1

Ans. :-

Date	Account Title	Debit	Credit
Dec 01	Cash	$56,000
	Owner's Capital A/c		$56,000
	(Being Nina Miller brought in cash as owner's contribution)
Dec 02	Supplies	$3,800
	Cash		$3,800
	(Being paid for supplies in cash)
Dec 03	Equipment A/c	$40,000
	Cash		$40,000
	(Being paid in cash for equipment)
Dec 04	Supplies	$9,100
	CalTech supply		$9,100
	(Being purchased supplies on credit from CalTech Supply)
Dec 05	Cash	$5,500
	Revenue A/c (sales)		$5,500
	(Being Consulting services provided for cash)
Dec 06	Rent Exp.	$2,300
	Cash		$2,300
	(Being rent for December paid in cash)
Dec 07	Salary Exp.	$2,000
	Cash		$2,000
	(Being employee salary paid)
Dec 08	Accounts Receivables	$4,900
	Revenue A/c (sales)		$3,100
	Other income		$1,800
	(Being consulting services worth $3100 and rental for $1800 provided on credit)
Dec 09	Cash	$4,900
	Accounts receivables		$4,900
	(Being Cash received for the bill issued on Dec 08.)
Dec 10	CalTech supply	$2,200
	Cash		$2,200
	(Being partial payment made to the CalTech supply)
Dec 11	Owner's capital A/c	$700
	Cash		$700
	(Being cash withdrawn by Nina Miller)
Dec 12	Cash	$3,500
	Advances from customers		$3,500
	(Being advance received from the customer for providing services)
Dec 13	Insurance exp.	$154
	Prepaid Insurance	$3,546
	Cash		$3,700
	(Being cash paid for insurance policy for 24 Months, starting from December)
Dec 14	Supplies	$1,420
	Cash		$1,420
	(Being cash paid for supplies)
Dec 15	Utilities exp.	$1,605
	Cash		$1,605
	(Being Cash paid for December utility expense)
Dec 16	Salary Exp.	$1,350
	Cash		$1,350
	(Being salary paid to employees for December)

Eco Build
Trial Balance
December 16, 2017
Particulars	Debit	Credit
Owner's Capital		$55,300
Cash	$10,825
Equipment	$40,000
CalTech Supply		$6,900
Advance from customers		$3,500
Revenue (Sales)		$8,600
Other income		$1,800
Prepaid Insurance	$3,546
Supplies	$14,320
Rent	$2,300
Salary	$3,350
Insurance exp.	$154
Utilities	$1,605
	$76,100	$76,100