Halladay Enterprises had the following selected transactions:
| 1 | Bo Halladay invested $4,000 cash in the business. |
| 2 | Paid office rent of $840. |
| 3 | Performed consulting services and billed a client $5,200 |
| 4 | Bo Halladay withdrew $750 cash for personal use |
Instructions
- Indicate the effect each transaction has on the accounting equation (Assets = Liabilities + Owner's Equity). using plus and minus signs.
- Journalize each transaction.
Teresa Alvarez has prepared the following list of statements about the general ledger:
- The general ledger contains all the asset and liability accounts but no owner's equity accounts.
- The general ledger is sometimes referred to as simply the ledger.
- The accounts in the general ledger are arranged in alphabetical order.
- Each account in the general ledger is numbered for easier identification
- The general ledger is a book of original entry.
Instructions
Identify each statement as true or false. If false, indicate how to correct the statement.
Selected transactions from the journal of June Feldman, Investment broker, are presented below.
Instructions
- Post the transactions to T-accounts.
- Prepare a trial balance at August 31, 2020.
The T-accounts below summarize the ledger of Daggett Landscaping Company at the end of the first month of operations.
Instructions
- Prepare the complete general journal (including explanations) from which postings to Cash were made.
- Prepare a trial balance at April 30, 2018.
Presented below is the ledger for Shumway Co.
Instructions
- Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20, and provide explanations for each.
- Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31, 2020.
Selected transactions for Dianne Burke Company during its first month in business are presented below.
| Sept. 1 | Invested $10,000 cash in the business. |
| 5 | Purchased equipment for $12,000 paying $4,000 in cash and the balance on account. |
| 25 | Paid $3,000 cash on balance owed for equipment. |
| 30 | Withdrew $700 cash for personal use. |
Burke's chart of accounts shows: No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 301 Owner's Capital, and No. 306 Owner's Drawings.
Instructions
- Journalize the transactions on page J1 of the Journal. (Omit explanations.).
- Post the transactions using the standard account form.
The bookkeeper for J.L. Kang Equipment Repair made a number of errors in journalizing and posting, as described below.
- A credit posting of $525 to Accounts Receivable was omitted
- A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense
- A collection from a customer of $100 in payment of its account owed was journalizing and posted as a debit to Cash $100 and a credit to Service Revenue $100.
- A credit posting of $415 to Property Taxes Payable was made twice.
- A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25 and a cr3edit to Cash $25.
- A debit of $625 to Advertising Expense was posted as $652.
Instructions
For each error:
- Indicate whether the trial balance will balance.
- If the trial balance will not balance, indicate the amount of the difference.
- Indicate the trial balance column that will have the larger total.
Consider each error separately. Use the following form, in which error (1) is given as an example.
| (a) | (b) | (c) | |
| Error (1) | In Balance No | Difference $525 | Larger Column debit |
The accounts in the ledger of Overnite Delivery Service contain the following balances on July 31, 2019
| Accounts Receivable | $7,642 | Prepaid Insurance | $1,968 |
| Accounts Payable | 8,396 | Maintenance and Repairs Expense | 961 |
| Cash | ? | Service Revenue | 10,610 |
| Equipment | 49,360 | Owner's Drawings | 700 |
| Gasoline Expense | 758 | Owner's Capital | 42,000 |
| Utilities Expense | 523 | Salaries and Wages Expense | 4,428 |
| Notes Payable | 17,000 | Salaries and Wages Payable | 815 |
Instructions
Prepare a trial balance with the accounts and fill in the missing amount for Cash.
Selected transactions for A. Mane, an interior decorator, in her first month of business, are as follows:
| Jan. 2 | Invested $10,000 cash in the business |
| 3 | Purchased used car for $3,000 cash for use in business. |
| 9 | Purchased supplies on account for $500. |
| 11 | Billed customers $2,400 for services performed. |
| 16 | Paid $350 cash for advertising. |
| 20 | Received $700 cash from customers billed on January 11 |
| 23 | Paid creditor $300 cash on balance owed. |
| 28 | Withdrew $1,000 cash for personal use by owner. |
Instructions
Journalize the transactions using journal page J1. (You may omit explanations.)
Transaction data for Sanculi Real Estate Agency are presented as follows:
| Oct. 1 | Alan Sanculi begins business as a real estate agent with a cash investment of $15,000 |
| 2 | Hires an administrative assistant. |
| 3 | Purchases office furniture for $1,900, on account. |
| 6 | Sells a house and lot for R. Craig; bills R. Craig $3,800 for realty services performed. |
| 27 | Pays $1,100 on the balance related to the transaction of October 3. |
| 30 | Pays the administrative assistant $2,500 in salary for October. |
Instructions
Journalize the transactions. (You may omit explanations.)