Question

GLO201 (No Analysis Tab) - Based on the... LO A1, C3, C4, P1, P2, P3 This problem is based on the transactions for the Solid Systems Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Dec. 1 On December 1, April Mohr forms a consulting business, named Solid Systems. Solid Systems receives $86,000 cash from April Mohr as an owner contribution. Dec. 2 Solid Systems pays $5,300 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Solid Systems pays $70,000 cash for equipment. Dec. 4 Solid Systems purchases $11,350 of supplies on credit from a supplier, CalTech Supply. Dec. 5 Solid Systems provides consulting services and immediately collects $7.000 cash. Dec. 6 Solid Systems pays $3,800 cash for December rent. Dec. 7 Solid Systems pays $2,300 cash for employee salary. Dec. 8 Solid Systems provides consulting services of $6,100 and rents its test facilities for $4.800. The customers billed $10.900 for these services. Dec. 9 Solid Systess receives $10.900 cash from the client billed on December 8. Dec. 10 Solid Systems pays CalTech Supply $3,700 cash as partial payment for its December 4 $11,350 purchase of supplies. Dec. 11 April Mohr withdraws $2,200 cash from Solid Systems for personal use. Dec 12 Solid Systems receives $5,000 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. Dec. 13 Solid Systems pays $5,200 cash insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 Solid Systems pays $2,920 cash for supplies. Dec. 15 Solid Systems pays $3,105 cash for December utilities expense. Dec. 16 Solid Systems pays $2,100 cash in employee salary for work performed in the latter part of December Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet General Journal Tab. For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits General Ledger Tab. One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each arrunt from the General lartner in with its halanre either a dehit Ararartit Terrahisha wa t al < Prev 6 of 8 Next >

Answer 1

Solid Systems Company Journal Enteries Date Particulars Dec-01 Cash a/c Dr. To April Mohr, Capital (Capital Invested) Debit in $ Credit in $ 86000 86000 Dr, 5300 Dec-02 Supplies a/c To Cash (Supplies purchased for cash) 5300 70000 Dec-03 Equipment a/c Dr. To Cash (Equipment purchased) 70000 11350 Dec-04 Supplies a/c Dr, To Accounts Payable (Supplies purchased on account) 11350 7000 Dec-05 Cash a/c Dr. To Consultancy Revenue (Services provided for cash) 7000 Dr. 3800 Dec-06 Rent Expense a/c To Cash (Rent paid) 3800 Dr. 2300 Dec-07 Salary Expense a/c To Cash (Salary paid) 2300 10900 Dec-08 Accounts Receivable a/c Dr. To Consultancy Revenue To Rent Revenue (Services on account) 6100 4800

Date Particulars Dec-09 Cash a/c Dr. To Accounts Receivable (Cash from debtors) Debit in $ Credit in $ 10900 10900 Dr. 3700 Dec-10 Accounts Payable a/c To Cash (Creditors paid) 3700 2200 Dec-11 April Mohr, Withdrawals a/c Dr. To Cash (Cash drawn for personal use) 2200 5000 Dec-12 Cash a/c Dr. To Unearned Revenue (Advance from client) 5000 5200 Dec-13 Prepaid Insurance a/c Dr. To Cash (12 month insurance paid) 5200 2920 Dec-14 Supplies a/c Dr, To Cash (Supplies purchased for cash) 2920 Dr. 3105 Dec-15 Utilities Expense a/c To Cash (Utilities paid) 3105 Dec-16 Dr. 2100 Salary Expense a/c To Cash (Salary paid) 2100

Trial Balance For the month ending Dec 31 Particulars Debit in $ Credit in $ 8275 Cash 19570 5200 70000 7650 5000 86000 Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Revenue April Mohr, Capital April Mohr, Withdrawals Consultancy Revenue Rent Revenue Rent Expense Salary Expense Utilities Expense Totals 2200 13100 4800 3800 4400 3105 116550 116550

Statement of Income For the month ending Dec 31 Consultancy Revenue Rent Revenue Total Revenue 13100 4800 17900 Less: Rent Expense Salary Expense Utilities Expense Net Income 3800 4400 3105 11305 6595 Statement of Owner's Equity For the month ending Dec 31 April Mohr, Capital Net Income 86000 6595 92595 -2200 90395 April Mohr, Withdrawals

Amounts in $ Amounts in $ Balance sheet As at Dec 31 Assets Current Assets Cash Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Current Liabilities 8275 Accounts Payable 19570 Unearned Revenue 5200 33045 7650 5000 12650 Non Current Assets Equipment Total Assets Owner's Equity 70000 April Mohr, Capital 103045 Total Liabilities & equity 90395 103045