Question

PCMOT] - Excel ( C a mpoyta) Accounting exercises week 1 201) ресирование Вид 2 че бадя Главная Встка Ракетна страницы формула Дание е е села 0 Aщищенный просмот е осторожнее файл и черна оrу содержать вируси. Если вам не нужно изменить от документ, учше раtіоnать с ним в режиме заи ного просмотра Разрешить редактирование 16 1 X f The company paid $4,800 for transportation services for the students for 8 months P Q R M N O Recording Transactions in General Journal and posting them to the corresponding Ledger Accounts 2 Prepare the journal entries for the following transactions in the General Journal (36%) 3 Evelyn Smith created a corporation named Great Rythm, which offers music lessons. The business transactions during December 2018 while the company was being organized are listed below 4 Dec, 1 Smith and several others invested $1.200.000 cash in the business 6 Dec. 5 The company paid $4800 for transportation services for the students for 8 months Dec. 11 The company purchased facilities for $600.000, of which $400,000 was applicable to the land and $200.000 to the building A cash payment of $100.000 was made and a note payable was issued for the balance of the purchase price. 9 Dec. 12 A 12-month insurance policy of $2.400 was signed and fully paid with Mapfre Insurance Company 11 Dec. 22 Sheet music supplies to last for several months were purchased from Happy Notes for $400 on account Dec. 23 Smith received an advanced payment of $220.000 from Forest Heights High School for services to be performed in the future 27 Pad Happy Notes 5150 as partial payment on the account payable for sheet music supplies purchased on December Dec. 28 Paid $12.200 to employees for work done during December Dec 29 Billed clients $185.000 for work performed in December 19 Date Credit 1200000 Journal entries g o

Answer 1

Journal Entries
Date	Particulars	Debit	Credit
Dec,1	Cash A/c	$     12,00,000.00
	Smith and Several others A/C		$      12,00,000.00
	(Being Cash Brought into Business By Smith and Others
Dec,1	Smith and Several others A/C	$     12,00,000.00
	Capital Stock A/c		$      12,00,000.00
	(Being Smith and Several Others invested $120,000 in business)
Dec,5	Transportation Expenses A/c	$               600.00
	Prepaid transportation A/c	$            4,200.00
	Cash A/c		$             4,800.00
	(being transportation charges for 8 students for 8 months paid in dec,)
	Expenditure for Dec month booked as expenditure and amount for remaining 7 months kept in prepaid expenses a/c)
Dec, 12	Insurance Expenses/Insurance Charges A/c	$               200.00
	Prepaid Insurance A/c	$            2,200.00
	Cash A/c		$             2,400.00
	(Being Insurance Charges For 12 months agreed with Mapfre Insurance Company - Expenditure for One Month apportioned and booked - Balnce 11 months amount kept in Prepaid Insurance A/c)
Dec, 22	Sheet Music Supplies A/c	$               400.00
	Happy Notes		$                400.00
	(being $400 worth of Sheet music Supplies purchased from Happy Notes)
Dec, 23	Cash A/c	$       2,20,000.00
	Forest heights high School A/c		$        2,20,000.00
	(being Cash received from Forest Heights High School)
Dec,27	Happy Notes A/c	$               150.00
	Cash A/c		$                150.00
	(Being Cash Paid to Happy Notes on account of sheet music Supplies)
Dec,28	Wages Expenses A/c	$          12,200.00
	Cash A/c		$           12,200.00
	(Being Dec month wages paid in cash to employees)
Dec,29	Fees Receivable A/c	$       1,85,000.00
	Fee receipts (Revenue)		$        1,85,000.00
	(Being Fee Receipts Billed To Clients for services rendered in December - receipt not Specified, Hence Treated as Receivable)
	TOTAL	$ 28,24,950.00	$ 28,24,950.00

Capital Stock A/C Date Particulars Amount Date Dec, 1 Particulars Amount By Smith and Several Others A/c $ 12,00,000.00 Dec,31 To Balance C/D $ 12,00,000.00 $ 12,00,000.00 $ 12,00,000.00 Smith and Several Others A/C Date Particulars By Cash Amount Date $ 12,00,000.00 Dec, 1 Particulars To Capital Stock A/C Amount $ 12,00,000.00 $ 12,00,000.00 $ 12,00,000.00 Transport Expenses A/C Date Particulars Amount Date Dec,5 Particulars To cash A/C Amount 600.00 By Profit and Loss A/C $ 600.00 $ 600.00 $ 600.00

Capital Stock A/C Date Particulars Amount Date Dec, 1 Particulars Amount By Smith and Several Others A/c $ 12,00,000.00 Dec,31 To Balance C/D $ 12,00,000.00 $ 12,00,000.00 $ 12,00,000.00 Smith and Several Others A/C Date Particulars By Cash Amount Date $ 12,00,000.00 Dec, 1 Particulars To Capital Stock A/C Amount $ 12,00,000.00 $ 12,00,000.00 $ 12,00,000.00 Transport Expenses A/C Date Particulars Amount Date Dec,5 Particulars To cash A/C Amount 600.00 By Profit and Loss A/C $ 600.00 $ 600.00 $ 600.00

Prepaid Transport Expenses A/C Date Particulars Amount Date Dec,5 Particulars To cash A/C Amount $ 4,800.00 By Current Asserts A/C $ 4,800.00 $ 4,800.00 $ 4,800.00 Insurance Expenses A/C Dr Date Particulars Amount Date Dec, 12 Particulars To cash A/C Amount 200.00 By Profit and Loss A/C $ 200.00 $ 200.00 IS 200.00 Prepaid insurance Expenses A/C Date Particulars Amount Date Dec, 12 Particulars To cash A/C Amount $ 2,200.00 By Current Assets Alc $ 2,200.00 $ 2,200.00 $ 2,200.00

Sheet Music Supplies A/C Dr Date Particulars Amount Date Dec, 22 Particulars To Happy Notes A/C Amount 400.00 By Profit and Loss A/C $ 400.00 $ 400.00 $ 400.00 Happy Notes A/C Dr Date Dec, 22 Particulars By Sheet Music Supplies Amount Date S 400.00 Dec,22 Particulars To Cash A/C Amount 150.00 Dec,31 To Current liabilities Alc $ 250.00 $ 400.00 $ 400.00 Forest Heights High School A/C Cr Dr Date Dec,23 Date Particulars Amount Particulars By Cash Amount $ 2,20,000.00 Dec,31 To Current liabilities A/c $ 2,20,000.00 $ 2,20,000.00 $ 2,20,000.00

Wages Expense A/C Dr Date Particulars Amount Date Dec,28 Particulars To Cash A/C Amount $ 12,200.00 Dec 31 By Profit and Loss A/C $ 12,200.00 $ 12,200.00 $ 12,200.00 Fees Receivable A/C Or Dr Date Particulars Amount Date Dec, 29 Particulars To Fee Receipts (Revenue) Amount $ 1,85,000.00 Dec,31 By Current Assets Alc $ 1,85,000.00 $ 1,85,000.00 $ 1,85,000.00 Fee Receipts (Revenue) A/C Cr Dr Date Dec,29 Date Particulars Amount Particulars By Fees Receivable Amount $ 1,85,000.00 Dec,31 To Profit and Loss A/C $ 1,85,000.00 $ 1,85,000.00 $ 1,85,000.00

Cash A/C Dr Particulars Amount To Smith and Several Others A/ $ 12,00,000.00 To Forest Heights High School $ 2,20,000.00 Date Dec,5 Dec,5 Dec,12 Dec 12 Dec, 27 Dec, 28 Particulars By Transportation Expenses By Prepaid Transportation A/C By Insurance Expense By Prepaid Insurance A/C By happy notes By wages Expense Amount Date 600.00 Dec, 1 $ 4,200.00 Dec,23 $ 200.00 $ 2,200.00 150.00 $ 12,200.00 Dec,31 To Current Assets A/C $ 14,00,450.00 $ 14,20,000.00 $ 14,20,000.00