Question

20X6, its first month of operations:(40%) Apr 1 2 4 6 9 17 23 30 Received €20,100 and issued ordinary shares. Purchased €700 of office supplies on account. Paid €15,200 cash for land to use as a building site. Performed service for customers and received cash of €2,300. Paid €150 on accounts payable. Performed service for UPS on account totaling €1,100.00 Collected €850 from UPS on account. Paid the following expenses: salary, €1,700; rent, €1,300. 1. Record the transactions in the journal of Green Tree Cellular, Inc. Key transactions by date and include an explanation for each entry. 2. Post the entries to the ledger, using T-accounts. Key transactions by date. Date the ending balance of each account April 30 3. Prepare the trial balance of Green Tree Cellular, Inc., at April 30, 20X6. m Dini

Answer 1

                                      JOURNAL ENTRIES

DATE	PARTICULARS	L F	AMOUNT	AMOUNT
APRIL 1	CASH A/C          DR		20100
	TO ORDINARY SHARES A/C			20100
	(ORDINARY SHARES ISSUED)
APRIL 2	OFFICE SUPPLIES A/C     DR		700
	TO CASH			700
	(PURCHASE OF OFFICE SUPPLIERS)
APRIL 4	LAND A/C            DR		15200
	TO CASH			15200
	(PAID CASH FOR LAND)
APRIL 6	CASH A/C           DR		2300
	TO CUSTOMERS A/C			2300
	(PAID FOR SERVICE )
APRIL 9	ACCOUNTS PAYABLE A/C      DR		150
	TO CASH			150
	(PAID ACCOUNTS PAYABLE)
APRIL 17	CUSTOMERS A/C            DR		1100
	TO UPS A/C			1100
APRIL 23	CASH A/ C                  DR		850
	TO CUSTOMERS A/C			850
	(CASH COLLECTED FROM CUSTOMERS)
APRIL 30	SALARY A/C              DR		1700
	TO CASH			1700
	(PAID SALARY)
APRIL 30	RENT A/C               DR		1300
	TO CASH			1300
	(RENT PAID)

                                          LEDGERS

                                               CASH A/C

DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
APRIL 1	TO ORDINARY SHARES	20100	APRIL 2	BY OFFICE SUPPLIES	700
6	TO CUSTOMERS	2300	4	BY LAND A/C	15200
23	TO CUSTOMERS	850	9	BY ACCOUNTS PAYABLE	150
			30	SALARY	1700
			30	RENT	1300