Instructions: Javier started a business that is dedicated to the preparation of land for construction. Below are the transactions made during the past month. Make Jornal entries for each transaction and T accounts for each account. Use the “Chart of Accounts” attached a) On the first day of the month Javier opened a bank account in the name of the business; in which I deposit $25,000 b) $600 is paid in cash for the month's rent. c) A used truck was purchased for $8,000 in cash. d) $3,000 tools were purchased on credit at Home-Depot. e) $150 was paid in cash for the use of electricity. f) $1,500 was paid in advance in cash for 2 years insurance for the truck. g) Customers paid the business $3,000 in cash for services received. h) Pay $700 salary to an employee. i) Javier prepares a plot of land and the client makes a cash payment of $2,500 and he has a debt of $1,000. j) Pay $35 of the phone bill. k) Javier buys $300 worth of office equipment. Pay $100 in cash and take a credit for the remaining $200. l) Of the money owed by the client in letter i, the client pays $500. m) Javier pays $850 salary to an employee. n) Javier pays $1,000 for the tools purchased in letter d. o) The presented business $2,000 more in income; of which they received $1,400 in cash and $600 remains to be collected. p) The owner withdraws $500 from the business account for his personal use.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Instructions: Javier started a business that is dedicated to the preparation of land for construction. Below are the transactions made during the past month. Make Jornal entries for each transaction and T accounts for each account. Use the “Chart of Accounts” attached

a) On the first day of the month Javier opened a bank account in the name of the business; in which I deposit $25,000

b) $600 is paid in cash for the month's rent.

c) A used truck was purchased for $8,000 in cash.
d) $3,000 tools were purchased on credit at Home-Depot.

e) $150 was paid in cash for the use of electricity.

f) $1,500 was paid in advance in cash for 2 years insurance for the truck.

 

g) Customers paid the business $3,000 in cash for services received.

h) Pay $700 salary to an employee.

i) Javier prepares a plot of land and the client makes a cash payment of $2,500 and he has a debt of $1,000.

j) Pay $35 of the phone bill.

k) Javier buys $300 worth of office equipment. Pay $100 in cash and take a credit for the remaining $200.

l) Of the money owed by the client in letter i, the client pays $500.

m) Javier pays $850 salary to an employee.

n) Javier pays $1,000 for the tools purchased in letter d.

o) The presented business $2,000 more in income; of which they received $1,400 in cash and $600 remains to be collected.

p) The owner withdraws $500 from the business account for his personal use.

Chart of Accounts
JAVIER` INC.
100 CASH
110 ACC. RECEIVABLE
120
OFFICE SUPPLIES
130
PREPAID INSURANCE
140 TRUCK EQUIPMENT
150 TOOLS
200
ACCOUNTS PAYABLE
210
LOAN PAYABLE
300
OWNER'S EQUITY
400
SERVICE REVENUE
410
INTEREST REVENUE
500 SALARIES EXPENSE
510
INTEREST EXPENSE
520
RENT EXPENSE
530
UTILITIES EXPENSE
540
PHONE EXPENSE
Transcribed Image Text:Chart of Accounts JAVIER` INC. 100 CASH 110 ACC. RECEIVABLE 120 OFFICE SUPPLIES 130 PREPAID INSURANCE 140 TRUCK EQUIPMENT 150 TOOLS 200 ACCOUNTS PAYABLE 210 LOAN PAYABLE 300 OWNER'S EQUITY 400 SERVICE REVENUE 410 INTEREST REVENUE 500 SALARIES EXPENSE 510 INTEREST EXPENSE 520 RENT EXPENSE 530 UTILITIES EXPENSE 540 PHONE EXPENSE
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