Question

On October 1, 20x1, Helen Kennedy opened an advertising agency. DATE TRANSACTIONS Oct. 1 Helen Kennedy invested $58,000 cash in the business. 2 Paid October office rent of $2,900; issued Check 1001. 5 Purchased desks and other office furniture for $14,800 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days. 6 Issued Check 1002 for $3,100 to purchase art equipment. 7 Purchased supplies for $1,450; paid with Check 1003. 10 Issued Check 1004 for $580 for office cleaning service. 12 Performed services for $4,000 in cash and $1,880 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $380. 18 Purchased a computer for $2,900 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,700 down payment, with the balance payable in 30 days. (Use one compound entry.) 20 Issued Check 1806 for $7,480 to office Furniture Mart, Inc., as payment on account for Invoice 6704. 26 Performed services for $4,308 on credit. 27 Paid $315 for monthly telephone bill; issued Check 1007. 30 Received $3,600 in cash from credit customers. 30 Mailed Check 1888 to pay the monthly utility bill of $390. 30 Issued Checks 1889-1011 for $7,900 for salaries. Required: 1. Journalize the above transactions. 2. Post the above transactions to the ledger accounts. Analyze: What is the balance of account 202 in the general ledger?

Answer 1

Date	Description	LF	Amount
Debit	Credit
Oct-01	cash		58,000
	Capital			58,000
	(Helen Kennedy invested cash in business)
Oct-02	Office rent		2,900
	Bank			2,900
	(Paid office rent via check 1001)
Oct-05	Furnutures and equipment		14,800
	Office furniture mart			14,800
	(Purchased furnitures on credit via invoice
	6704 payable in 60 days)
Oct-06	Art equipment		3,100
	Bank			3,100
	( Purchase made by issuing check 1002)
Oct-07	Supplies		1,450
	Bank			1,450
	(Purchase made by issuing check 1003)
Oct-10	Office cleaning service/House keeping		580
	Bank			580
	(Payment made by check 1004)
Oct-12	cash		4,000
	Accounts receivable		1,800
	Service revenue			5,800
	(Payment received in cash and credit)
Oct-15	cash		380
	Supplies			380
	(Damaged supplies returned)
Oct-18	Computer		2,900
	Bank			1,700
	Office furniture mart			1,200
	(Purchased on credit via invoice 7108 and
	down payment made by check 1005)
Oct-20	Office furniture mart		7,400
	Bank			7,400
	(Part payment made for invoice 6704)
Oct-26	Accounts receivable		4,300
	Service revenue			4,300
	(Service rentered on credit)
Oct-27	Telephone bill		315
	Bank			315
	(paid telephone bill by check 1007)
Oct-30	cash		3,600
	Accounts receivable			3,600
	(cash received from customers)
Oct-30	Utility bill		390
	Bank			390
	(Mailed check 1008 to pay utility bill)
Oct-30	Salary expenses		7,900
	Bank			7,900
	(Salary payment made by check 1009-1011)

Capital account

Dr Cr

Date	particulars	JF	Amount	Date	particulars	JF	Amount
				Oct-01	By cash		58,000
Oct-30	To balance c/d		58,000

Cash account

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-01	To capital		58,000
Oct-12	To service revenue		4,000
Oct-15	Supplies		380
Oct-30	Accounts Receivables		3,600
				Oct-30	By balance c/d		65,980

Bank account

Date	particulars	JF	Amount	Date	particulars	JF	Amount
				Oct-02	By office rent		2,900
				Oct-06	By Art equipment		3,100
				Oct-07	By supplies		1,450
				Oct-10	By office cleaning/house keeping		580
				Oct-15	By computer		1,700
				Oct-20	Office furniture mart		7,400
				Oct-27	Telephone bill		315
				Oct-30	Utility bill		390
				Oct-30	Salary expenses		7,900
Oct-30	To balance c/d		25,735

Office rent

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-02	To cash		2,900

Furnitures and equipment

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-05	To Office furniture Mart		14,800
				Oct-30	By balance c/d		14,800

Art equipment

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-06	To bank		3,100
				Oct-30	By balance c/d		3,100

Supplies

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-07	To bank		1,450		By cash		380
				Oct-30	By balance c/d		1,070

Office cleaning/House keeping

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-10	To bank		580
				Oct-30	By balance c/d		580

Computer

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-18	To bank		1,700
	To office furniture Mart		1,200
				Oct-30	By balance c/d		2,900

Telephone bii

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-27	To bank		315
				Oct-30	By balance c/d		315

Utility Bill

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-30	To bank		390
				Oct-30	By balance c/d		390

Salary expenses

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-30	To bank		7,900
				Oct-30	By balance c/d		7,900

Service revenue

Date	particulars	JF	Amount	Date	particulars	JF	Amount
				Oct-12	By cash		4,000
				Oct-12	By Accounts receivables		1,800
				Oct-26	By Accounts receivables		4,300
Oct-30	To balance c/d		10,100

Accounts Receivables

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-12	To service revenue		1,800	Oct-30	By cash		3,600
Oct-26	To service revenue		4,300
				Oct-30	By balancd c/d		2,500

Office furniture Mart

Date	particulars	JF	Amount	Date	particulars	JF	Amount
Oct-20	To bank		7,400	Oct-05	By furnitures and equipment		14,800
				Oct-18	By computer		1,200
Oct-30	To balance c/d	8,600