Question

Question 21 90 pts Oliver Rowe owned a bus and was tired of his current job. He decided to open a business, Oliver, Inc., that provides day tours to tourists through Hollywood and Los Angeles. Prepare journal entries to record the following transactions during the month of September, 2020, then prepare an unadjusted Trial Balance for Oliver, Inc. Below is a Chart of Accounts for Oliver, Inc.: Chart of Accounts Cash Bus Office Equipment Tour Supplies Prepaid Insurance Accounts Receivable Accounts Payable Common Stock Dividends

Answer 1

Credit Credit Debit $40,000 $70,000 Debit $2,000 $2,000 $1,10,000 Date Particulars Sep 29 Salary Expense Cash (To record salary expense) Sep 30 Dividend Cash (To record dividend payment) $4,000 $5,000 $4,000 $5,000 $7,500 Ans 2 $7,500 $1,000 $1,000 Ans 1 Journal entry for Transaction Date Particulars Sep 01 Cash Bus Common Stock (To record issue of common stock) Sep 02 Office Equipment Cash (To record purchase of office equipment) Sep 03 Tour Supplies Accounts Payable (To record purchase of tour supplies) Sep 04 Parking Expense Cash (To record parking expense) Sep 05 Prepaid Insurance Cash (To record payment of insurance premium) Sep 10 Cash Tour Revenue (To record tour revenue) Sep 12 Accounts Receivable Tour Revenue (To record tour revenue) Sep 19 Accounts Payable Cash (To record payment made to vendor) Sep 22 Cash Accounts Receivable (To record payment received from customer) $2,400 $2,400 Oliver Inc Unadjusted Trial Balance Sep 30 2020 Transactions January 31 Debit Credit Debit Credit $52,000 $21,900 $30,100 $7,500 $7,500 $0 $7,500 $0 $7,500 $2,400 $0 $2,400 $5,000 $0 $70,000 $0 $70,000 $7,500 $7,500 $0 $0 $1,10,000 $1,10,000 $4,000 $0 $4,000 $0 $12,000 $12,000 $2,000 $0 $2,000 $1,000 $0 $1,000 $1,58,900 $1,58,900 $1,22,000 $1,22,000 $4,500 $5,000 Particulars Cash Accounts Receivable Tour Supplies Prepaid Insurance Office Equipment Bus Accounts Payable Common Stock Dividend Tour Revenue Salary Expense Parking Expense $4,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500