Question

The following events apply to Complete Business Service in 2018, its first year of operations:

1. Received $30,000 cash from the issue of common stock.

2. Earned $25,000 of service revenue on account.

3. Incurred $10,000 of operating expenses on account.

4. Received $20,000 cash for performing services.

5. Paid $8,000 cash to purchase land.

6. Collected $22,000 of cash from accounts receivable.

7. Received a $6,000 cash advance for services to be provided in the future.

8. Purchased $900 of supplies on account.

9. Made a $7,500 payment on accounts payable.

10. Paid a $5,000 cash dividend to the stockholders.

11. Recognized $500 of supplies expense.

12. Recognized $5,000 of revenue for services provided to the customer in Event 7.

Required

1. Record the events in the general journal.

2. Post the events to T-accounts and determine the ending account balances.

3. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

Answer 1

Page no: Credit a. » Page ① Date: _/ / General Journal Debit Cash &30000 y capital a common shock (To record issue of common shouc for cash) $ 30000 - $ 2rooo 27 - Auount Receivable To Serric Revenue (to riard sensie revenue corned on $25000 - awwunt) 3 Operating $10000 expentes de To Acounts Payable operating expenses incurred $10000 - (To record on acount) 20000 40 - Cash To (to record of Serrice Revenue reeipt of cash for performing $20000 anices) & 8000 5) Land To - (To reord 8000 Cath purchase of land for cash) $ 22000 Cash 6) I To Amounts Ruivable ruord collukon cath from amount receivable o

Page ① Date:_ _ _ Page no: General Journal Debit Credot 17 Cash $ 6000 $6000 sonricus to be performed L To Uneamed Revenue reword receipt of cash future) (to in for - $ 900 8) - Supplies To (To record $900 Amount purchase Payable of supoles on acount) 9 Auounts Payable To cash (To reward payment of cash $7500 $7500 amounts payable) I to 1 10 5000 & Dividend To (To record Carh $5000 I payment of cash dividend) $500 11 $500 Supplies Expense To Supplies (To recognise supply expense) L2) Uneamed to ( Ruorded in to Revenue Senice Revenue service revenue for customer relating $5000 $ 5000 services provided to event 7

Page ③ Date: Page No.: b. (Debit Cash All - (Credit] e To equity capital - common stock To Serriu revenue To Auounts receivabr To uneamed revenue By Land $8000 By Amounts Payable $7500. By Dividend & 5ooo $30000 & 20000 $ 22000 & 6000 By Balance yd $57500 - $78000 $ 78000 (Debit) Equity capital - common stock All (credit) To Balance of $ 30000 By cash $ 30000 $30000 $ 30000 (Debit Account Receivable All (credit) To service revenue $25000 By cash By balonce ed $22000 $3000 $25000 25000 (Deloit) service revenue Ale C B Auounts Receivable Cash $50000 By uncanned revenue (Credit) $25000 $ 20000 $5000 To balance ud $50000 $ 50000

Date:_ Page No.2 Debit) Operating Experter All (credit) To Acounts Payable $10000 Belanu old $10000 $10000 $10000 (Debit) Amount Payable Ale - (Credil) I expenses To TO cash Balonca eld $ 7100 $ 3400 * 10000 & goo в "Гро frogoo $ logoo (Debit) All Land $8000 Credit) $8000 To cash By Balonu yo $ 8000 $ 8000 (Ocbit) (Credit) $6000 To To service balance revenue qd Uneamed Revenue Alc $5000 By cash $1000 ] $ 6000 $6000 (Debit) To Accounts Supplies $900 Payable All By supplies expense by balance eld Creell) $500 $400 $900 $ 900

Page 6 Date:__/_Page no:_ Debit) Dividend All Condit) $ 5000 & sooo By balance el dat 5000 &5ooo Cebrit) Те дори Supplies $500 soo T $ 500 exponte ale e By balance eldon ale Credit) $500

Page Dato: 1 l Page No. Date: _/ Page No.:_ Trial Balance Creelit Debit $ 57500 $ 30000 $3000 & Soooo - 1. 2 3 4 5. f. T. 8. g. 10. 11. Account Cash Equity capital - common stock ccount Receivable service Revenue Operating expenses Amounts Payable Land Uncomed Revenue Supplies Dindend supplies expenses $3400 $ 8000 $1000 $ 400 $ 5000 $ 500 Total $ 844oo $844oo