For the past three years, Carol Dixon operated part-time as shipping agent and in 2022 she decided to move to a rented office and to operate the business on a full-time basis. She registered the business as CD Shipping Agent Ltd but has no accounting personal to prepare her financial information and has approached your group for assistance. The company’s financial year end is December 31 each year. They have provided the following information and transactions for 2022:   Jan1.     Balances from 2021 –Cash $280,000; Accounts Receivable                                $125,000;   Supplies $105,000; Furniture and Equipment $440,000;                  Other Creditors $115,000; and Capital $835,000. Jan 2.     The following assets were received from Carol Dixon in                                        exchange for capital in the company: cash - $120,000, accounts                         receivable  -$20,500, supplies - $25,050, and office equipment -                        $100,000. Feb1.              Paid fifteen (15) months’ rent on a lease rental contract,                                     $375,000. Mar 30.           Paid the premiums on the property and peril insurance policies,                        $150,000. April 4.            Received cash from clients as an advance payment for                                       services to be provided in the coming months, $200,000. May 5.            Purchased additional office equipment on account from DT                                 Company, $60,000. June 6.           Received cash from clients on account, $63,000. June 10.        Paid cash for newspaper advertisement, $15,800. Aug 12.          Paid DT Company a portion of the debt incurred on May 5,                                $45,000. Sept 12.         Recorded services provided on account for the period July 1 –                           Sept 12, $104,000. Sept 30.         Paid part-time workers salary, $60,000. Oct 17.            Recorded cash from cash clients for fees earned during the                               first half of year, $233,000. Oct30.             Paid cash for supplies, $11,000. Oct 30.            Recorded services provided on account for the period June to                           July, $110,000. Nov 24.          Recorded cash from cash clients for fees earned for the period                          September 13- Nov 24, $190,000. Nov 25.          Received cash from clients on account, $22,000. Nov 27.          Paid part-time workers for salary $180,000. Dec 29.          Paid telephone bill for the year 2022 $60,000. Dec 30.          Paid electricity bill for the year 2022 $190,000. Dec 30.          Recorded cash from cash clients for fees earned for the period                          September 14- Dec 30, $190,000. Dec 30.          Recorded services provided on account for October to                                        December 2022, $63,000 Requirement: Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and creditedand include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Recievables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Furniture and equipment 21 Other Creditors 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Advertising Expense 57 Income Summary 2.Post the journal entries to their respective ledgeraccounts Please only do question 2.  I ask an expert already on question 1.  So please ignore question one.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Scenario:

 

For the past three years, Carol Dixon operated part-time as shipping agent and in 2022 she decided to move to a rented office and to operate the business on a full-time basis. She registered the business as CD Shipping Agent Ltd but has no accounting personal to prepare her financial information and has approached your group for assistance. The company’s financial year end is December 31 each year. They have provided the following information and transactions for 2022:

 

Jan1.     Balances from 2021 –Cash $280,000; Accounts Receivable                                $125,000;   Supplies $105,000; Furniture and Equipment $440,000;                  Other Creditors $115,000; and Capital $835,000.

Jan 2.     The following assets were received from Carol Dixon in                                        exchange for capital in the company: cash - $120,000, accounts                         receivable  -$20,500, supplies - $25,050, and office equipment -                        $100,000.

Feb1.              Paid fifteen (15) months’ rent on a lease rental contract,                                     $375,000.

Mar 30.           Paid the premiums on the property and peril insurance policies,                        $150,000.

April 4.            Received cash from clients as an advance payment for                                       services to be provided in the coming months, $200,000.

May 5.            Purchased additional office equipment on account from DT                                 Company, $60,000.

June 6.           Received cash from clients on account, $63,000.

June 10.        Paid cash for newspaper advertisement, $15,800.

Aug 12.          Paid DT Company a portion of the debt incurred on May 5,                                $45,000.

Sept 12.         Recorded services provided on account for the period July 1 –                           Sept 12, $104,000.

Sept 30.         Paid part-time workers salary, $60,000.

Oct 17.            Recorded cash from cash clients for fees earned during the                               first half of year, $233,000.

Oct30.             Paid cash for supplies, $11,000.

Oct 30.            Recorded services provided on account for the period June to                           July, $110,000.

Nov 24.          Recorded cash from cash clients for fees earned for the period                          September 13- Nov 24, $190,000.

Nov 25.          Received cash from clients on account, $22,000.

Nov 27.          Paid part-time workers for salary $180,000.

Dec 29.          Paid telephone bill for the year 2022 $60,000.

Dec 30.          Paid electricity bill for the year 2022 $190,000.

Dec 30.          Recorded cash from cash clients for fees earned for the period                          September 14- Dec 30, $190,000.

Dec 30.          Recorded services provided on account for October to                                        December 2022, $63,000

Requirement:

  1. Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and creditedand include a narration for each transaction:
Account # Account Name
11 Cash
12 Accounts Recievables
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Furniture and equipment
21 Other Creditors
22 Salaries Payable
23 Unearned Fees
31 Capital Stock
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Insurance Expense
55 Utilities Expense
56 Advertising Expense
57 Income Summary

2.Post the journal entries to their respective ledgeraccounts

Please only do question 2.  I ask an expert already on question 1.  So please ignore question one.

 

Expert Solution
steps

Step by step

Solved in 2 steps with 10 images

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

This is the adjusted entry from your experts

Date Adjusting Entries Debit $ Credit $
       
31-Dec Insurance expense 120,000  
  Prepaid insurance   120,000
  insurance expense for the year    
       
31-Dec Supplies expense (105,000+25,050+11,000-65,000) 76,050  
  Supplies    76,050
  Supplies used    
       
31-Dec Salaries expense 140,000  
  Salaries payable   140,000
  Accured salaries expense    
       
31-Dec rent expense (375,000 - 75,000) 300,000  
  Prepaid rent   300,000
  Rent expense for the year    
       
31-Dec Unearned fees ($200,000 - 20,000) 180,000  
  Fees earned   180,000
  Fees earned    

Post the adjusting entries to their respective ledger accounts already started in requirement # 2.

Solution
Bartleby Expert
SEE SOLUTION
Follow-up Question

3. Prepare a trial balance based on the balances derived after completing requirement #2.

 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education