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
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
(1)
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
(2)
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?
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