Professional Documents
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Prepare general journal entries for the following transactions of a new business called Pose for Pics.
Aug. 1 Hashim Paris, the owner, invested $7,500 cash and $32,500 of photography equipment in
the business.
1 Paid $3,000 cash for an insurance policy covering the next 24 months.
5 Purchased office supplies for $1,400 cash.
20 Received $2,650 cash in photography fees earned.
31 Paid $875 cash for August utilitie
Aug 5
Cash 101 1,400
Purchased supplies for cash 163 1,400
Aug 20
Cash 101 2,650
Photography fees earned 2,650
Aug 31
Cash 101 875
August utilities 875
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47,925 47,925
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Use the information in Exercise 2-4 to prepare an August 31 trial balance for Pose-for-Pics. Open
these T-accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; H. Paris,
Capital; Photography Fees Earned; and Utilities Expense. Post the general journal entries to these
T-accounts (which will serve as the ledger), and prepare a trial balance.
Pose-for-Pics
Trial Balance
August 31
Debit Credit
Cash 4,875
Office Supplies 1,400
Prepaid Insurance 3,000
Photography Equipment 32,500
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Problem 2-2A Journal entries see below. Need to complete all worksheets on the example
1. Prepare general journal entries to record these transactions (use the account titles listed in
part 2).
2. Open the following accounts—their account numbers are in parentheses (use the balance column
format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163);
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Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable
(250); S. Shelton, Capital (301); S. Shelton, Withdrawals (302); Engineering Fees Earned (402);
Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs
Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after
each posting.
Debit Credit
a.
Cash 101 105,000
Office Equipment 163 6,000
Drafting Equipment 164 45000
Shania Shelton, Capital 301 1560000
c.
Cash 101 75,000
Purchased building 170 75000
d.
Cash 101 6,000
Purchased 18-month insurance policy 108 6000
e.
Cash 101 5700
Payment for completed work 402 5700
f.
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k.
Cash 101 7200
Accounts Receivable 106 7200
l.
Cash 101 1,500
Wages Expense 601 1500
m.
Cash 101 2,250
Accounts Payable 201 2250
n.
Cash 101 675
Repair Expense 604 675
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o.
Cash 101 9,360
S. Shelton. Withdrawls 302 9360
p.
Cash 101 1,500
Wages Expense 602 1500
q.
Cash 101 3,000
Advertising fees 603 3000
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2-2A T-accounts Post the journal entries from part 1 to the accounts and enter the balance after each posting
Need to complete all worksheets on the example
Cash No. 101 Accounts Payable No. 201
Date Debit Credit Balance Date Debit Credit Balance
105,000 5400 99,600 2,250
75,000 24,600 1,200
6,000 18,600 2,250 1,200
5700 24,300
10,500 13,800 Notes Payable No. 250
7200 21,000 Date Debit Credit Balance
1,500 19,500 48,600
2,250 17,250 12,000
675 16,575 60600
9,360 7,215
1,500 5,712 S. Shelton, Capital No. 301
3,000 2,715 Date Debit Credit Balance
Accounts Receivable No. 102 156,000
Date Debit Credit Balance 156,000
12000
18000 S. Shelton, Withdrawals No. 302
7,200 Date Debit Credit Balance
22800 9,360
Prepaid Insurance No. 108 9360
Date Debit Credit Balance Engineering Fees Earned 402
6,000 Date Debit Credit Balance
6000 18,000
Office Equiment No. 163 5,700
Date Debit Credit Balance 12,000
6,000 35700
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Shelton Engineering
Trial Balance
June 30
Debit Credit
Cash 2,715
Accounts receivable 22,800
Prepaid Insurance 6,000
Office Equipment 6,000
Drafting Equipment 69,750
Building 75,000
Land 54,000
Accounts Payable 1200
Notes Payable 60,600
S. Shelton, Capital 156,000
S. Shelton, Withdrawals 9,360
Engineering Fees earned 35,700
Wages Expense 3,000
Equipment Rental Expense 1,200
Advertising Expense 3,000
Repairs Expense 675
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