Question

The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April 1, 2019 April 1 balances DebitCredit Cash Accounts receivable Prepaid rent Unused supplies Accounts payable Common stock 5,000 5,000 200 500 4,000 6,700 Required: 1 Prepare journal entries to record the April transactions shown on the "Transactions" page (see tab below). Incl lude general ledger account numbers. 2 Post the transactions to the T- accounts. 3 Prepare al alance at April 30, 2019 4 Prepare an interim income statement and statement of changes in equity for the month ended April 30, 2019 and interim balance sheet at April 30,

Answer 1

1) Journal Entries:
Date	Accounts Title	Debit $	Credit $
a	Cash	1000
	AR		1000
	(being collection from AR)
b	AR	1000
	Sales Revenue		1000
	(being credit for table rent)
c	Advertising exp.	100
	Salaries exp.	1000
	telephone exp.	500
	Cash		1600
	(being expenses paid)
d	AP	800
	Cash		800
	(being payables paid)
e	Repair exp	500
	AP		500
	(being truck repair exp. Bill received)
f	Cash	2900
	AR		2900
	(being collection from AR)
g	AR	2000
	Sales Revenue		2000
	(being credit for table rent)
h	Rent exp.	60
	Prepaid rent		60
	(being rent expense booked)
i	Supplies exp	200
	Unused Supplies		200
	(being supplies expense booked 500-300=200)
j	Dividend	700
	Cash		700
	(being dividend paid)

2) T- Accounts:
Cash a/c'
Debit	Amount $	Credit	Amount $
OB	5000	c	100
a	1000	c	1000
f	2900	c	500
		d	800
		j	700
		CB	5800
Total	8900	Total	8900
AR a/c
OB	5000	a	1000
b	1000	f	2900
g	2000	CB	4100
Prepaid rent a/c
OB	200	h	60
		CB	140
Unused Supplies a/c
OB	500	i	200
		CB	300
AP a/c
d	800	OB	4000
CB	3700	e	500
Common stock a/c
		OB	6700
Sales Revenue a/c
CB	3000	b	1000
		g	2000
Advertising Exp. a/c
c	100
Salaries exp a/c
c	1000
Telephone exp a/c
c	500
Repair exp a/c
e	500
Rent Exp. A/c
h	60
Supplies exp a/c
i	200
Dividend a/c
j	700

3) Trial Balance:
Accounts Title	Debit $	Credit $
Cash	5800
AR	4100
Prepaid Rent	140
Unused Supplies	300
AP		3700
CS		6700
Revenue		3000
Adver exp	100
Sala exp	1000
Telep exp	500
Repai exp	500
Rent exp	60
Supply exp	200
Dividend	700
Total	13400	13400

4) Income Statement:
	Amount $
Revenues	3000
Less:Expenses:
Advert	100
Salaries	1000
Telephone	500
Repair	500
Rent	60
supplies	200
total expenses	2360
Net Income	640
Statement of Equity changes:
	CS	RE	Total
OB	6700	0	6700
Add during April	0	640	640
Less during April	0	-700	-700
CB	6700	-60	6640
Balance Sheet on April 30:
Assets :	Amount $
Cash	5800
AR	4100
Prepaid Rent	140
Unused Supplies	300
Current Assets	10340
Fixed Assets	0
Total Assets	10340
Liabilities and Capital:	Amount $
Current Liabilities AP	3700
CS	6640
Total Liabilities and Capital	10340