Question

41. Tom Edwards opened an auto repair business on Apr. 1. 20... During the first month of operations, the fir had the following transactions. Record these transactions on page 1 of the general journal. Omit explanations. Post appropriate transactions to the general ledger and complete a trail balance. DO NOT FORGET POST REFERNECES. Apr. 1 Tom Edwards invested $30,000 cash in the business. . I 2 Paid rent for April, S2.100. 8 Bought equipment for $12.000 and issued a check for $3,000 as a down payment. 12 Performed services for $3.200 in cash, and $1,200 on credit. 19 Paid electric bill, S225. 25 Received $900 on account from credit customers, Page 1 JOURNAL Post Ref. Description Debit Date Credit

Answer 1

JOURNAL

DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT
APRIL 1	CAPITAL		30,000
	CASH			30,000
2	RENT		2100
	CASH			2100
8	EQUIPMENT		12000
	BANK			3000
	ACCOUNTS PAYABLE			9000
12	CASH		3200
	ACCOUNTS RECEIVABLE		1200
	SERVICE FEE			4400
19	ELECTRICITY EXPENSES		225
	CASH			225
25	CASH		900
	ACCOUNTS RECEIVABLE			900
	TOTAL		49,625	49,625

LEDGER

CASH ACCOUNT

DATE	ITEM	DEBIT	CREDIT
APRIL 1	CAPITAL		30000
2	RENT		2100
12	SERVICE FEE	3200
19	ELECTRICITY EXPENSES		225
25	ACCOUNTS RECEIVABLE	900
	BALANCE	28225
	TOTAL	32325	32325

ACCOUNTS RECEIVABLE

DATE	ITEM	DEBIT	CREDIT
APRIL 12	SERVICE FEE	1200
25	CASH		900
	BALANCE		300
	TOTAL	1200	1200

EQUIPMENT

DATE	ITEM	DEBIT	CREDIT
APRIL 8	BANK CHECK	3000
	ACCOUNTS PAYABLE	9000
	BALANCE		12000
	TOTAL	12000	12000

ACCOUNTS PAYABLE

DATE	ITEM	DEBIT	CREDIT
APRIL 8	EQUIPMENT		9000
	BALANCE	9000
	TOTAL	9000	9000

CAPITAL

DATE	ITEM	DEBIT	CREDIT
APRIL 1	CASH	30000
	BALANCE		30000
	TOTAL	30000	30000

SERVICE FEE

DATE	ITEM	DEBIT	CREDIT
APRIL 12	CASH		3200
	ACCOUNTS RECEIVABLE		1200
	BALANCE	4400
	TOTAL	4400	4400

ELECTRICITY EXPENSES

DATE	ITEM	DEBIT	CREDIT
APRIL 19	CASH	225
	BALANCE		225
	TOTAL	225	225

RENT

DATE	ITEM	DEBIT	CREDIT
APRIL 2	CASH	2100
	BALANCE		2100
	TOTAL	2100	2100

BANK ACCOUNT

DATE	ITEM	DEBIT	CREDIT
APRIL 8	EQUIPMENT		3000
	BALANCE	3000
	TOTAL	3000	3000

TRIAL BALANCE

ITEM	DEBIT BALANCE	CREDIT BALANCE
CASH		28225
BANK		3000
CAPITAL	30000
ACCOUNTS RECEIVABLE	300
ACCOUNTS PAYABLE		9000
EQUIPMENT	12000
SERVICE FEE		4400
ELECTRICITY EXPENSES	225
RENT	2100
TOTAL	44,625	44,625