Question

2B-5. Matt organized a professional counseling center for ex-cowboys on July 1, 20x1. During the first month of operation the business, C-BOYS, Inc., completed the following transactions. July 1 July 2 July 3 July 5 July 9 July 10 July 11 Matt purchased common stock in the company in return for $24,000 cash. Matt gave his old PC to the company in return for $1,800 of common stock C-BOYS purchased other equipment for $4,800 on account. C-BOYS performed counseling service for $9,200 cash. C-BOYS paid $19,000 cash to acquire 100 acres of land in western Kansas. C-BOYS performed $42,000 of services for a client and agreed to be paid in two weeks. C-BOYS paid salaries to its employees of $6,800. C-BOYS paid its utility bill in the amount of $800. C-BOYS paid its rent expense of $1,400. Matt bought some jeans and a hat for $234.31 for his wedding. The client who received services on July 10 paid $7,000 cash and received a one-week extension for the rest of the payment. C-BOYS declared and paid $3,200 cash in dividends. C-BOYS performed $6,900 of counseling service for $800 cash with the rest due in three weeks. The client who received services on July 10 paid the remainder of the amount owed. July 15 July 17 July 22 July 24 July 26 July 31 Required: Use the following accounts in this answer: Cash, Accounts receivable. Supplies, Equipment, Land, Accounts payable, Common stock, Dividends. Service revenue, Salary expense, Rent expense, Utilities expense. 1. Record each transaction in the journal using the account names provided. Each transaction should be keyed by its date. The explanation line may be omitted. 2. Post each of the transactions to the ledger using the T-account format. Use the label bal for the beginning and ending balance in each account. Be sure to label each entry with the date of each transaction. 3. Prepare the trial balance as of July 31, 20x1.

Answer 1

Journalised Entry
Date	Transaction	LF	Debit	Credit
Jul-01	Purchase A/c		24000
	To Cash			24000
	(Being Matt purchased common stock in the company for cash)
Jul-02	Purchase A/c		1800
	To cash			1800
	(Being Old Pc purchased from matt for company common stock)
Jul-03	Equipment A/c		4800
	To Account Payable			4800
	Being equipment purchased on credit
Jul-05	Cash A/c		9200
	To Sales A/c			9200
	Being C-boys provide the counselling services
Jul-09	Land A/c		19000
	To Cash			19000
	Being Land purchased as company assets
Jul-10	Account Receivables A/c		42000
	To Sales A/c			42000
	Being C-boys provide the counselling services on two week payment term
Jul-11	Salaries A/c		6800
	To Cash			6800
	Being Salary paid for the period
Jul-15	Utility Bill A/c		800
	To Cash			800
	Being Utility bill paid
Jul-17	Rent A/c		1400
	To Cash			1400
	Being Rent paid for the period
Jul-22	Capital A/c		234.31
	To Drawing			234.31
	Being amount paid by the company for matt personal exp
Jul-24	Cash A/c		7000
	To Account Receivables			7000
	Being amount realised of sales made at july 10 and rest will be paid
Jul-26	Dividend A/c		3200
	To cash			3200
	Being Dividend declared and same as paid
Jul-27	Cash A/c		800
	Account Receivables A/c		6100
	To Sales			6900
	Being Services provided for 800 cash and rest on credit
Jul-31	Cash A/c		35000
	To Account Receivables			35000
	(Being balance amount realiased of sales made at july 10 )