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Anthony Moore recently formed an information technology services and consulting firm in England. He was very busy during the first month and has not yet had an opportunity to install his computerized accounting package. But, he did understand the need to keep track of all transactions as they occurred. Following is a manual journal that he maintained for transactions occurring during January. All amounts are in the British Pound. Anthony has requested that you prepare a ledger of the company's accounts, and post these transactions to determine the balance of each account. He needs this data in order to begin the process of transitioning to his new computerized accounting system. GENERAL JOURNAL Date Accounts Debit Credit 2-Jan-05 Cash 3,000,000 3,000,000 Capital Stock Anthony invested cash in exchange for stock 4-Jan-05 Equipment 600,000 Loan Payable 600,000 Purchased equipment with proceeds of loan 6-Jan-05 Accounts Receivable 900,000 Revenues 900,000 Provided services to customers on account 7-Jan-05 Supplies Expense 30,000 Accounts Payable 30,000 Purchased (on account) and used supplies 11-Jan-05 Accounts Payable 30,000 Cash 30,000 Paid for purchase of Jan. 7 15-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee 17-Jan-05 Cash 450,000 Accounts Receivable 450,000 Collected partial payment on receivables 18-Jan-05 Cash 540,000 Revenues 540,000 Provided services to customers for cash 20-Jan-05 Supplies Expense 60,000 Accounts Payable Purchased (on account) and used supplies 60,000 31-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee Loan Payable Interest Expense 31-Jan-05 600,000 6,000 Cash 606,000 Paid off the loan with interest

Anthony Moore recently formed an information technology services and consulting firm in England. He was very busy during the first month and has not yet had an opportunity to install his computerized accounting package. But, he did understand the need to keep track of all transactions as they occurred. Following is a manual journal that he maintained for transactions occurring during January. All amounts are in the British Pound. Anthony has requested that you prepare a ledger of the company's accounts, and post these transactions to determine the balance of each account. He needs this data in order to begin the process of transitioning to his new computerized accounting system. GENERAL JOURNAL Date Accounts Debit Credit 2-Jan-05 Cash 3,000,000 3,000,000 Capital Stock Anthony invested cash in exchange for stock 4-Jan-05 Equipment 600,000 Loan Payable 600,000 Purchased equipment with proceeds of loan 6-Jan-05 Accounts Receivable 900,000 Revenues 900,000 Provided services to customers on account 7-Jan-05 Supplies Expense 30,000 Accounts Payable 30,000 Purchased (on account) and used supplies 11-Jan-05 Accounts Payable 30,000 Cash 30,000 Paid for purchase of Jan. 7 15-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee 17-Jan-05 Cash 450,000 Accounts Receivable 450,000 Collected partial payment on receivables 18-Jan-05 Cash 540,000 Revenues 540,000 Provided services to customers for cash 20-Jan-05 Supplies Expense 60,000 Accounts Payable Purchased (on account) and used supplies 60,000 31-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee Loan Payable Interest Expense 31-Jan-05 600,000 6,000 Cash 606,000 Paid off the loan with interest

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Anthony Moore recently formed an information technology services and consulting firm in England. He was very busy during the first month and has not yet had an opportunity to install his computerized accounting package. But, he did understand the need to keep track of all transactions as they occurred. Following is a manual journal that he maintained for transactions occurring during January. All amounts are in the British Pound. Anthony has requested that you prepare a ledger of the company's accounts, and post these transactions to determine the balance of cach account. He needs this data in order to begin the process of transitioning to his new computerized accounting system. GENERAL JOURNAL Date Accounts Debit Credit 2-Jan-05 Cash 3,000,000 Capital Stock 3,000,000 Anthony invested cash in exchange for stock Equipment Loan Payable Purchased equipment with proceeds of loan 4-Jan-05 600,000 600,000 6-Jan-05 Accounts Receivable 900,000 Revenues Provided services to customers on account 900,000 7-Jan-05 Supplies Expense 30,000 Accounts Payable Purchased (on account) and used supplies 30,000 11-Jan-05 Accounts Payable 30,000 Cash 30,000 Paid for purchase of Jan. 7 15-Jan-05 Wage Expense 300,000 Cash 300,000 | Paid employee Cash Accounts Receivable 17-Jan-05 450,000 450,000 Collected partial payment on receivables 18-Jan-05 Cash 540,000 Revenues 540,000 Provided services to customers for cash 20-Jan-05 Supplies Expense 60,000 Accounts Payable Purchased (on account) and used supplies 60,000 31-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee 31-Jan-05 Loan Payable 600,000 Interest Expense 6,000 Cash 606,000 Paid off the loan with interest
Transcribed Image Text:Anthony Moore recently formed an information technology services and consulting firm in England. He was very busy during the first month and has not yet had an opportunity to install his computerized accounting package. But, he did understand the need to keep track of all transactions as they occurred. Following is a manual journal that he maintained for transactions occurring during January. All amounts are in the British Pound. Anthony has requested that you prepare a ledger of the company's accounts, and post these transactions to determine the balance of cach account. He needs this data in order to begin the process of transitioning to his new computerized accounting system. GENERAL JOURNAL Date Accounts Debit Credit 2-Jan-05 Cash 3,000,000 Capital Stock 3,000,000 Anthony invested cash in exchange for stock Equipment Loan Payable Purchased equipment with proceeds of loan 4-Jan-05 600,000 600,000 6-Jan-05 Accounts Receivable 900,000 Revenues Provided services to customers on account 900,000 7-Jan-05 Supplies Expense 30,000 Accounts Payable Purchased (on account) and used supplies 30,000 11-Jan-05 Accounts Payable 30,000 Cash 30,000 Paid for purchase of Jan. 7 15-Jan-05 Wage Expense 300,000 Cash 300,000 | Paid employee Cash Accounts Receivable 17-Jan-05 450,000 450,000 Collected partial payment on receivables 18-Jan-05 Cash 540,000 Revenues 540,000 Provided services to customers for cash 20-Jan-05 Supplies Expense 60,000 Accounts Payable Purchased (on account) and used supplies 60,000 31-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee 31-Jan-05 Loan Payable 600,000 Interest Expense 6,000 Cash 606,000 Paid off the loan with interest
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