Question

As the bookkeeper of Phil's Plowing, you have been asked to complete the entire accounting cycle for Phil from the following information. 201X Mar. Phil invested $11,000 cash and $6,000 worth of snow equipment into the plowing 1 сompany. Paid 3 months' rent in advance for garage space, $1,200. 1. Purchased office equipment from Lite Corp. for $10,800 on account. 6 Purchased snow supplies for $1,100 cash. Collected $10,000 from plowing local shopping centers. 8 Phil Mack withdrew $6,000 from the business for personal use. 12 Plowed Holiday parking lots, payment not to be received until May, $1,000. Paid salaries to employees, $2,100. 20 26 28 Paid Lite Corp. one-half amount owed for office equipment. Advertising bill received from Washington Co. but will not be paid until May, $600. 29 30 Paid telephone bill, $130. Use the following chart of accounts Chart of Accounts

Answer 1

Journal Entries are attached below. Please refer

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| Credit Debit 11,000 6,000 17,000 1,200 1,200 10,800 10,800 1,100 1,100 JOURNAL ENTRIES IN THE BOOKS OF Phil's Plowing Date Particulars Mar-01 Cash a/c Snow Equipment a/c To P. Mack Capital a/c (To Phil invested capital and equipment to the business) Mar-01 Prepaid Rent a/c To Cash (TO 3 month rent paid in advance, rent expenses for the month recognised at the end of month) Mar-04 Office Equipment a/c To Accounts Payable (Lite Corp) (To equipment purchased on credit) Mar-06 Snow Supplies Expense a/c To Cash a/c (To snow supplies purchased for cash) Mar-08 Cash a/c To Account Receivable a/c (To account receivable collected from plowing local shopping centre) Mar-12 P. Mack Withdrawals a/c To Cash a/c (To amount withdrawn by Phil for personal use) Mar-20 Account Receivable a/c To Plowing Fees (Income) (To revenue recognised from holiday parking lots but service provided on credit which payment not yet received) Mar-26 Salaries Expense To Cash a/c (TO Salary expenses paid) Mar-28 Account Payable (Lite Corp) To Cash a/c (To half of equipment cost paid to Lite Corp) 10,000 10,000 6,000 6,000 1,000 1,000 2,100 2,100 5,400 5,400

600 600 130 130 300 300 400 Mar-29 Advertising Expense To Accounts Payable (To advertising cost incurred but payment made in next month) Mar-30 Telephone Expenses To Cash a/c (To Telephone expenses paid) Mar-31 Snow Supplies (Asset) To Snow supplies expenses (To inventory of Snow supplies recognised) Mar-31 Rent Expenses To Prepaid Rent (To rent for the month recognised) Mar-31 Depreciation Expense - Office Equipment To Accumulated Depreciation - Office Equipment (To depreciation for the month recognised) Mar-31 Depreciation Expense - Snow Equipment To Accumulated Depreciation - Snow Equipment (To depreciation for the month recognised) Mar-31 Salaries Expense To Salaries Payable (To Salary expenses for the month recognised but not paid) 400 180 100 100 270 270