Part A (20 points)
Prepare in proper form journal entries for the following transactions. Omit explanations.
October
2 Owner made a cash investment into the company $5,000
8 Bought supplies on account $100.
10 Paid salaries, $700
15 Paid for supplies purchased on October 8
21 Received company telephone bill, to be paid later, $30
Part B (5 points each for a possible total of 50 points)
Record the following selected transactions for January in a two-column journal, identifying each entry by letter:
(a) Earned $7,000 fees; customer will pay later.
(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
(c) Paid $3,000 for rent for January.
(d) Purchased $2,500 of supplies on account.
(e) A. Allen $1,000 investment in the company.
(f) Received $7,000 in cash for fees earned previously.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $6,250.
(i) Received $7,150 from customers on account.
(j) A. Allen withdrawal of $1,750.
Part C
(10 points) From the following items in the income statement columns of the worksheet of Friend's Tutoring at December 31, prepare the closing entries without explanation, assuming that a $1,000 withdrawal was made during the period.
Income Statement
Account Debit Credit
Tutoring Fees 3,450
Wages Expense 700
Rent Expense 600
Supplies Expense 450
Insurance Expense 250 _____
2,000 3,450
Net Income 1,450 _____
$3,450 $3,450
(5 points each for a possible total of 20 points) A summary of selected ledger accounts appear below for S. Ball for the current calendar year.
Answer the following questions.
a. What was the total amount of withdrawals for the year?
b. What was the net income?
c. What was the total revenue?
d. What were the total expenses?
A01.V.10.1 Introduction to Accounting
Assignment 08,
Solved answers of Journal Entries, Two-column Journal, Closing Entries and Ledger Accounts
Answers:
Part A.
General Journal Page 1
Date
|
Description
|
Post.
Ref.
|
Debit
|
Credit
|
October 2
|
Cash
|
5,000
| ||
Owner Capital
|
5,000
| |||
8
|
Supplies
|
100
| ||
Accounts Payable
|
100
| |||
10
|
Salaries Expenses
|
700
| ||
Cash
|
700
| |||
15
|
Supplies
|
100
| ||
Cash
|
100
| |||
21
|
Telephone Expenses
|
30
| ||
Accounts Payable
|
30
|
Part B.
(a)
|
Account Receivable
|
7,000
| |
Fees Earned
|
7,000
| ||
(b)
|
Equipment
|
45,000
| |
Cash
|
20,000
| ||
Notes Payable
|
25,000
| ||
(c)
|
Rent Expenses
|
3,000
| |
Cash
|
3,000
| ||
(d)
|
Supplies
|
2,500
| |
Accounts Payable
|
2,500
| ||
(e)
|
Cash
|
1,000
| |
A.Allen, Capital
|
1,000
| ||
(f)
|
Cash
|
7,000
| |
Fees Earned
|
7,000
| ||
(g)
|
Accounts Payable
|
1,200
| |
Cash
|
1,200
| ||
(h)
|
Wages Expenses
|
6,250
| |
Cash
|
6,250
| ||
(i)
|
Cash
|
7,150
| |
Accounts Receivable
|
7,150
| ||
(j)
|
A.Allen, Drawing
|
1,750
| |
Cash
|
1,750
|
Part C.
(1)
Closing Entries
Date
|
Description
|
PR
|
Dr.
|
Cr.
|
Dec. 31
|
Tutoring Fees
|
3,450
| ||
Income Summary
|
3,450
| |||
31
|
Income Summary
|
2,000
| ||
Wages Expense
|
700
| |||
Rent Expense
|
600
| |||
Supplies Expense
|
450
| |||
Insurance Expense
|
250
| |||
31
|
Income Summary
|
1,450
| ||
Capital
|
1,450
| |||
31
|
Capital
|
1,000
| ||
Withdrawals
|
1,000
|
(2)
a. What was the total amount of withdrawals for the year?
Answer: 6,000
b. What was the net income?
Answer: 4,250
c. What was the total revenue?
Answer: 17,000
d. What were the total expenses?
Answer: 12,750
