Question

Instruction 1. Journalize the following transactions Jan 2. AAA issued extra common stock and collected cash $10,000 Jan 5. AAA purchased an equipment on credit ($3,000) Jan 20. AAA pays back $3,000 in cash to the equipment seller Jan 21. AAA borrowed $3,500 from local bank by signing a notes payable Jan 22. AAA purchased supplies $600 by cash Jan 23. AAA paid salaries $3,000 in cash Jan 24. AAA received cash $10,000 and promised to provide catering service on Jan. 31. Journal Entries Date Jan. 2 Explanation DR CR Jan. 5 Jan. 20 Jan. 21 Jan. 22 Jan. 23 Jan. 24 2. Prepare General Ledger for each account. (Be careful about previous balance) Account Name: Cash Date Jan. 2 Jan. 20. Jan. 21 Jan. 22 Jan. 23 Jan. 24 Explanation DR CRBalance Sheet 1

Answer 1

1) Journal Entry:
Date	Accounts Title	Debit $	Credit $
2-Jan	Cash	10000
	Common Stock		10000
	(being CS issued)
5-Jan	Equipment	3000
	Account Payable		3000
	(being equipment purchased on credit)
20-Jan	Account Payable	3000
	Cash		3000
	(being AP paid)
21-Jan	Cash	3500
	Note Payable		3500
	(being borrowed by signing Note)
22-Jan	Supplies	600
	Cash		600
	(being supplies purchased)
23-Jan	Salaries expense	3000
	Cash		3000
	(being salaries paid)
24-Jan	Cash	10000
	Unearned Revenue		10000
	(being cash received as Unearned revenue)
2) General Ledger / T-Accounts:
Cash Account :
Date	Explanation	Debit	Credit	Balance
2-Jan	CS issued	10000		10000
20-Jan	AP		3000	7000
21-Jan	NP	3500		10500
22-Jan	Supplies		600	9900
23-Jan	Salaries		3000	6900
24-Jan	Unearned Rev	10000		16900
Equipment Account:
Date	Explanation	Debit	Credit	Balance
5-Jan	AP	3000		3000
AP Account:
Date	Explanation	Debit	Credit	Balance
5-Jan	Equipment		3000	-3000
20-Jan	Cash	3000		0
Note Payable Account:
21-Jan	Cash		3500	-3500
Supplies Account:
22-Jan	Cash	600		600
Salaries Account:
23-Jan	Cash	3000		3000
Unearned Revenue Account:
24-Jan	Cash		10000	-10000
3) Unadjusted Trial Balance:
Accounts	Debit $	Credit $
Cash	16900
Supplies	600
Equipment	3000
Accounts Payable		0
Unearned Revenue		10000
Notes Payable		3500
Salaries expense	3000
Common Stock		10000
Total	23500	23500
4) End of period Ajustment:
a)
Date	Accounts Title	Debit $	Credit $
31-Jan	Unearned Revenue	10000
	Service Revenue		10000
	(being catering service provided of advance received)
Effect on	liablity	DECREASE
	Unearned Revenue	NIL
	equity	INCREASE
	C S Revenue	10000
b)
Date	Accounts Title	Debit $	Credit $
31-Jan	Dep expense	500
	Acc. Dep. - equip.		500
	(being depreciation on equipment booked)
Effect on	asset	DECREASE
	Acc. Depreciation	500
	equity	DECREASE
	Dep. Expense	500
c)
Date	Accounts Title	Debit $	Credit $
31-Jan	Salaries expense	2000
	Salaries payable		2000
	(being depreciation on equipment booked)
Effect on	liability	INCREASE
	Acc. Salaries Payable	2000
	equity	DECREASE
	Salary Expense	5000
5) Adjusted Trial Balance:
Accounts	Debit $	Credit $
Cash	16900
Supplies	600
Equipment	3000
Accounts Payable		0
Unearned Revenue		0
Notes Payable		3500
Salaries expense	5000
Common Stock		10000
Salaries payable		2000
Depre expenses	500
Acc. Dep- Equip		500
Service Revenue		10000
Total	26000	26000