Question

Using transactions provided in the worksheet below, complete the following: (1) create journal entries for your company using the template provided; and (2) complete the Trial Balance at January 31, 2018 using the same template.

June

3rd

ABC Company pays $32,000 cash for equipment.

June

5th

ABC Company purchases $15,000 of merchandise inventory on credit from a supplier.

June

8th

ABC Company pays $ 800 in cash for employee salary.

June

11th

ABC Company pays $15,000 cash to settle the account payable created on June 5th.

June

15th

The owner withdraws $1,000 cash from ABC Company for personal use.

June

19th

ABC Company sold merchandise inventory that had cost $8,000 for $11,000 cash (Note: This transaction will require two journal entries).

June

24th

ABC Company pays $560 cash for this month's utilities.

June

27th

ABC Company pays $6,000 cash (insurance premium) for a 6-month insurance policy. Coverage begins July 1st.

June

30th

ABC Company pays $2,000 cash for rent.

Part 3
Required: Enter the journal entries from the transactions found on the Transaction tab
Journal Entries
Date	Account Number	Account Title	Debit	Credit

Required: Complete the Trial Balance as of June 30, 2020
Trial Balance
Account Number	Account Title	Debit	Credit
101	Checking
110	Merchandise Inventory
120	Prepaid Insurance
130	Equipment
201	Accounts Payable
301	Owner's Capital
302	Owner's Withdrawals
401	Sales Revenue
601	COGS
602	Salary Expense
603	Utility Expense
604	Rent Expense
		-	-

              
              
              
              
              
              
              
              
              
              
              
              

Answer 1

Date	Account No.	Account titles and explanation	Debit	Credit
03-Jun	130	Equipment	$32,000
	101	Checking		$32,000
		(equipment purchased for Checking)
05-Jun	110	Merchandise inventory	$15,000
	201	Accounts Payable		$15,000
		(Inventory purcahsed on credit)
08-Jun	602	Salary expense	$800
	101	Checking		$800
		(salary paid to staff)
11-Jun	201	Accounts Payable	$15,000
	101	Checking		$15,000
		(paid to creditors)
15-Jun	302	Owner's Withdrawals	$1,000
	101	Checking		$1,000
		(Checking withdrawn by owner)
19-Jun	101	Checking	$11,000
	401	Sales Revenue		$11,000
		(Checking sales made)
19-Jun	601	COGS	$8,000
	110	Merchandise Inventory		$8,000
		(cost of sales recorded)
24-Jun	603	Utility expense	$560
	101	Checking		$560
		(utility expense paid)
27-Jun	120	Prepaid insurance	$6,000
	101	Checking		$2,000
		(insurance paid)
30-Jun	604	Rent expense	$2,000
	101	Checking		$2,000
		(rent paid)
		Trial balance(Extract)
	Account No.	Account titles	Debit	Credit
	101	Checking	-$42,360
	110	Merchandise Inventory	$7,000
	120	Prepaid Insurance	$2,000
	130	Equipment	$32,000
	201	Accounts Payable		$0
	301	Owner's Capital		$22,000	(Balancing Figure)
	302	Owner's Withdrawals	$1,000
	401	Sales Revenue	$11,000
	601	COGS	$8,000
	602	Salary Expense	$800
	603	Utility Expense	$560
	604	Rent Expense	$2,000
			$22,000	$22,000
		Or, when Negative balance in Checking account is not allowed, then it is assumed that owner brought the capital in the business
		Trial balance(Extract)
	Account No.	Account titles	Debit	Credit
	101	Checking	$0
	110	Merchandise Inventory	$7,000
	120	Prepaid Insurance	$2,000
	130	Equipment	$32,000
	201	Accounts Payable		$0
	301	Owner's Capital		$64,360	(Balancing Figure)
	302	Owner's Withdrawals	$1,000
	401	Sales Revenue	$11,000
	601	COGS	$8,000
	602	Salary Expense	$800
	603	Utility Expense	$560
	604	Rent Expense	$2,000
			$64,360	$64,360