Question

PROBLEM 3-1A The chart of accounts of the Barnes School is shown here, followed by the transactions that took place during October of this year. Assets Revenue 111 Cash 411 Tuition Income 113 Accounts Receivable 115 Prepaid Insurance Expenses 124 Equipment 511 Salary Expense 512 Rent Expense 127 Furniture 513 Gas and Oil Expense Liabilities 514 Advertising Expense 221 Accounts Payable 515 Repair Expense Owner's Equity 516 Telephone Expense 311 R. Barnes, Capital 517 Utilities Expense 312 R. Barnes, Drawing 529 Miscellaneous Expense

Answer 1

IN THE BOOKS OF BARNES SCHOOL-JOURNAL

DATE	DETAILS	DEBIT	CREDIT
OCT 1	PREPAID INSURANCE	$1850
	CASH		$1850
	(BROUGHT A LIABILITY INSURANCE FOR ONE YEAR)
3	ADVERTISING EXPENSE	$415
	ACCOUNT PAYABLE		$415
	(ADVERTISING EXPENSE BEING RECORED)
4	RENT EXPENSE	$1870
	CASH		$1870
	(RENT EXPENSE OF CURRENT MONTH BEING PAID)
7	REPAIR EXPENSE	$318
	ACCOUNT PAYABLE		$318
	(BILL FOR EQUIPMENT REPAIR BEING RECORED)
10	CASH	$6375
	TUITION INCOME		$6375
	(TUITION FEE FROM STUDENT RECEIVED)
11	TELEPHONE EXPENSE	$312
	CASH		$312
	(TELEPHONE EXPENSE FOR THE MONTH IS PAID)
15	FURNITURE	$1980
	CASH		$980
	ACCOUNT PAYABLE		$1000
	(DESKS AND CHAIRS WERE PURCHASE $980 PAID IN CASH BALANCE $1000 WILL BE PAID LATER)
18	ACCOUNT PAYABLE	$415
	CASH		$415
	(BUISNESS SUMMARY IS BEING PAID FOR ADVERTISING EXPENSE)
21	R. BARNES,DRAWING	$1000
	CASH		$1000
	(BEING R.BARNES WITHDRAW CASH FROM BUSINESS FOR HIS PERSONAL USE)
24	GAS AND OIL EXPENSE	$225
	ACCOUNT PAYABLE		$225
	(BEING GAS AND OIL EXPENSE RECORED)
25	CASH	$6380
	TUITION INCOME		$6380
	(TUITION FEE RECEIVED FROM STUDENT)
27	SALARY EXPENSE	$1150
	CASH		$1150
	(SALARY OF PART TIME OFFICE ASSISTANT BEING PAID)
28	EQUIPMENT	$1950
	ACCOUNT PAYABLE		$1950
	(PHOTOCOPIER IS BEING PURCHASED ON ACCOUNT)
29	CASH	$950
	ACCOUNT RECEIVABLE		$950
	(TUITION FEE OF SEPTEMBER BEING RECEIVED)
30	UTILITIES EXPENSE	$623
	CASH		$623
	(UTILITES BILL BEING PAID FOR THE MONTH)
31	MISCELLANEOUS EXPENSE	$87
	CASH		$87
	(FLOWER ARRANGEMENTS BILL PAID)
31	EQUIPMENT	$1549
	R.BARNES,CAPTIAL		$1549
	(R.BARNES MAKE A INVESTMENT IN BARNES SCHOOL BY BRING HIS PC AND PRINTER)