Question

General Journal J1 Date Account Titles and Explanation Ref. Debit Credit 2016 Sept. 1 27,000 Cash Owner's Capital (Invested cash in business) 27,000 4 34,000 Equipment Cash Notes Payable (Paid cash and issued 2-year, 9%, note for equipment) 9,000 25,000 8 1,000 Rent Expense Cash (Paid September rent) 1,000 15 900 Prepaid Insurance Cash (Paid one-year liability insurance) 900 18 2,800 Cash Service Revenue (Received cash for delivery services) 2,800 20 500 Salaries and Wages Expense Cash (Paid salaries for current period) 500 25 100 Utilities Expense Accounts Payable (Received a bill for September utilities) 100 30 1,600 Owner's Drawings Cash (Withdrew cash for personal use) 1,600 30 4,500 Accounts Receivable Service Revenue (Billed customer for delivery service) 4,500

Prepare the financial statements of Company on September 30, 2016

Answer 1

Date Particulars 1-Sep To Owner's Capital 18-Sep To Service Revenue Cash Amount Date Particulars 27,000 4-Sep By Equipment 2,800 8-Sep By Rent Expense 15-Sep By Prepaid Insurance 20-Sep By Salaries and Wages Expense 30-Sep By Owner's Drawings 30-Sep By Balance c/d Amount 9,000 1,000 900 500 1,600 16,800 29,800 29,800 16,800 1-Oct To Balance b/d Date Particulars 30-Sep To Balance c/d Owner's Capital Amount Date Particulars 27,000 1-Sep By Cash Amount 27,000 27,000 27,000 27,000 1-Oct By Balance b/d Date Particulars 4-Sep To Cash 4-Sep To Notes Payable Equipment Amount Date Particulars 9,000 30-Sep By Balance c/d 25,000 Amount 34,000 34,000 34,000 34,000 1-Oct To Balance b/d Date Particulars 30-Sep To Balance c/d Notes Payable Amount Date Particulars 25,000 4-Sep By Equipment Amount 25,000 25,000 25,000 25,000 1-Oct By Balance b/d Date Particulars 8-Sep To Cash Rent Expense Amount Date Particulars 1,000 30-Sep By Balance c/d Amount 1,000 1,000 1,000 1,000 1-Oct To Balance b/d Particulars 15-Sep To Cash Prepaid Insurance Amount Date Particulars 900 30-Sep By Balance c/d Amount 900 900 900 1-Oct To Balance b/d 900 Date Particulars 30-Sep To Balance c/d Service Revenue Amount Date Particulars 7,300 18-Sep By Cash 30-Sep By Accounts Receivable Amount 2,800 4,500 7,300 7,300 7,300 1-Oct By Balance b/d Date Particulars 20-Sep To Cash Salaries and Wages Expense Amount Date Particulars 500 30-Sep By Balance c/d Amount 500 500 500 1-Oct To Balance b/d 500 Date Particulars 25-Sep To Accounts Payable Utilities Expense Amount Date Particulars 100 30-Sep By Balance c/d Amount 100 100 100 1-Oct To Balance b/d 100 Date Particulars 30-Sep To Balance c/d Accounts Payable Amount Date Particulars 100 25-Sep By Utilities Expense Amount 100 100 100 1-Oct By Balance b/d 100 Date Particulars 30-Sep To Cash Owner's Drawings Amount Date Particulars 1,600 30-Sep By Balance c/d Amount 1,600 1,600 1,600 1,600 1-Oct To Balance b/d Date Particulars 30-Sep To Service Revenue Accounts Receivable Amount Date Particulars 4,500 30-Sep By Balance c/d Amount 4,500 4,500 4,500 4,500 1-Oct To Balance b/d

TRIAL BALANCE DEBIT CREDIT Accounts Payable $ - $ 100 Accounts Receivable $ 4,500 $ Cash $ 16,800 $ Equipment $ 34,000 $ Notes Payable $ $ 25,000 Owner's Capital $ $ 27,000 Owner's Drawings $ 1,600 $ Prepaid Insurance $ 900$ Rent Expense $ 1,000 $ Salaries and Wages Expense $ 500 $ Service Revenue $ $ 7,300 Utilities Expense $ 100 $ Մ | | | | | | Մ | TOTAL $ 59,400 $ 59,400

$ 7,300 Profit & Loss Account Rent Expense $1,000 Service Revenue Salaries and Wages Expense $ 500 Utilities Expense $ 100 Net profit $5,700 TOTAL $ 7,300 TOTAL $7,300