### Educational Exercise: Understanding Journal Entries and Ledger Accounts#### Transactions of a New Company: Pose-for-Pics**Required Information:***The following information applies to the questions displayed below.***Transactions:**1. **August 1:** M. Harris, the owner, invested $14,580 cash and $62,350 of photography equipment in the company.2. **August 2:** The company paid $4,000 cash for an insurance policy covering the next 24 months.3. **August 5:** The company purchased supplies for $2,755 cash.4. **August 20:** The company received $2,950 cash from taking photos for customers.5. **August 31:** The company paid $885 cash for August utilities.**Task:**Open a ledger account for Cash in balance column format. Post general journal entries that impact cash from the above transactions to the ledger account for cash.---### Ledger Account for Cash**Ledger Account Number:** 101: Cash| Date | Description | Debit | Credit | Balance ||------------|-------------|-------|--------|---------|| | | | | || | | | | || | | | | || | | | | || | | | | |---### Explanation of Transactions and Ledger Entries1. **August 1 - Owner's Investment:** - **Debit:** Cash $14,580 - **Credit:** Owner’s Equity / Capital $14,580 - **Balance:** The initial cash balance after the owner's investment.2. **August 2 - Payment for Insurance Policy:** - **Debit:** Insurance Expense / Prepaid Insurance $4,000 - **Credit:** Cash $4,000 - **Balance:** Cash balance decreases by the amount paid for the insurance policy.3. **August 5 - Purchase of Supplies:** - **Debit:** Supplies $2,755 - **Credit:** Cash $2,755 - **Balance:** Cash balance decreases by the amount spent on supplies.4. **August 20 - Revenue from Taking Photos:** - **Debit:** Cash $2,950 - **Credit:** Revenue / Service Income $2,950 - **Balance:** Cash balance increases by the

T account: T account is a T-shaped appearance of the journal entries related to a specific account…

Required information The following information applies to the questions displayed below] Following are the transactions of a new company called Pose-for-Pics. August 1 M. Harris, the owner, invested $14,500 cash and $62,350 of photography equipment in the company. August 2 The company paid $4,000 cash for an insurance policy covering the next 24 months. August 5 The company purchased supplies for $2,755 cash. August 20 The company received $2,950 cash from taking photos for customers. August 31 The company paid $885 cash for August utilities.

Required information The following information applies to the questions displayed below] Following are the transactions of a new company called Pose-for-Pics. August 1 M. Harris, the owner, invested $14,500 cash and $62,350 of photography equipment in the company. August 2 The company paid $4,000 cash for an insurance policy covering the next 24 months. August 5 The company purchased supplies for $2,755 cash. August 20 The company received $2,950 cash from taking photos for customers. August 31 The company paid $885 cash for August utilities.

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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A. A corporation is started with an investment of $53,000 in exchange for stock. B. Equipment worth $4,800 is ordered. C. Office supplies worth $850 are purchased on account. D. A part-time worker is hired. The employee will work 15- 20 hours per week starting next Monday at a rate of $18 per hour. E. The equipment is received along with the invoice. Payment is due in three equal monthly installments, with the first payment due in sixty days. Journalize for Harper and Co. each of these transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. А. В. С. D. Е. II II II I B.
Illustration: Roth Contractor Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec Issued Capital for 5000 cash 3 Dec Paid 1200 cash for three months rent in advance 4 Dec Purchased a used truck for 10,000 on credit 4 Dec Purchased Supplies of 1000 on credit 6 Dec Paid 1800 for a one-year truck insurance policy 7 Dec Billed a customer 4500 for work completed to date 8 Dec Collected 800 for work completed to date 12 Dec Paid the following expense in cash Advertisement 350  Interest 100  Telephone 75  truck operating 425 Wages 2500 15 Dec Collected 2000 of the amount billed on 7 dec 18 Dec Billed Customer 6500 for work completed to date 19 Dec Signed a 9000 contract for work to be performed in Jan 2017 22 Dec Paid the following Expenses Advertisement 200  Interest 150 Truck Operating 375 Wages 2500 27 Dec Collected advance on work to be done in January 28 Dec Received a bill for 100 for electricity used during the…
MAKE A JOURNAL ENTRY
Prepare journal entries. Susan’s Shoe Shop opened on January 1. The following transactions took place during the first month:1.Deposited $30,000 in the firm’s checking account.2.Purchased shoes, boots, socks, and other inventory for $45,000 on account.3.Purchased display shelving, chairs, and other fixtures for $10,000 cash and $40,000 on account. Assume a useful life of five years and record annual depreciation.4.Obtained $20,000 and signed a three-year, $20,000 bank loan at 8% annual interest. Accrue interest at the year end.5.Had sales revenue during January of $75,000. Of this amount, $25,000 was received in cash and the balance was on account.6.The cost of the merchandise sold in item 5 was $12,000.7.Paid $10,000 to each of two different creditors.8.Signed an application for a one-year insurance policy and paid the year’s premium of $2,400.9.Paid three employees a monthly salary of $2,000 each.10.Collected $35,000 from customers.11. Acquired a patent for $5,000 cash, which…
Prepare an income statement for the month ended January 31,2018 General Entries: Jan5 Received $60,000 from Shophia Lebron and issued 12,000 common shares of $5 par value. Jan5 Paid $6,000 of general liability and property insurance. The disbursement by Check No. 100 was for a complete year of service. Jan6 Rented an office and furniture for $2,000 per month. Issued Check No. 101 for $6,000, representing the first and last month's rent and the security deposit.[ the security deposit (debit deposit), the last month's rent, and the current rent are to be classified separately.] Jan7 Issued Check No. 102 for $1,600 for the purchase of office supplies. Jan7 Issued Check No. 103 for $7,000 for advertising to be run in local nespaper and magazines in the month of Jan Jan10 Roxana Perini engaged My Place, House of Decor to renovate her oceanfront condominium. Received $10,000 from Roxana Perini after services were completed. Jan12 Recorded $6,000 (net 30) decorating fees earned on account…
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Yi Min started an engineering firm called Min Engineering. He began operations and completed seventransactions in May, which included his initial investment of $18,000 cash. After those seven transactions,the ledger included the following accounts with normal balances. Cash . . . . . . . . . . . . . . . . . . $37,600Office supplies. . . . . . . . . . 890Prepaid insurance. . . . . . . 4,600Office equipment. . . . . . . $12,900Accounts payable. . . . . . . 12,900Y. Min, Capital. . . . . . . . . . 18,000Y. Min, Withdrawals . . . . . . . . . . . $ 3,370Engineering fees earned. . . . . . . 36,000Rent expense. . . . . . . . . . . . . . . . 7,540 Required 1. Prepare a trial balance for this business as of the end of May. 2. The following seven transactions produced the account balances shown above. a. Y. Min invested $18,000 cash in the business. b. Paid $7,540 cash for monthly rent expense for May. c. Paid $4,600 cash in advance for the annual insurance premium beginning the next period. d.…
Required Information [The following information applies to the questions displayed below.] During January. Central Storage Company has the following transactions. 1. January 1 Issue 10,000 shares of common stock in exchange for $39,ee0 in cash. 2. January 5 Purchase land for $22,508. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $8,780 cash. 4. January 12 Hire three employees for $2,700 per month. 5. January 18 Receive cash of $12,700 in rental fees for the current nonth. 6. January 23 Purchase office supplies for $2,780 on account. 7. January 31 Pay employees $8,100 for the first month's salaries. 3. Prepare a trial balance. CENTRAL STORAGE COMPANY Trial Balance Accounts Debit Credit Cash Supplies Land Equipment Accounts Payable Notes Payable Common Stock Service Revenue Salaries Expense Totals
During January 2020 Orgonite Wellness Clinic completed the following transactions : Jan 1 Orgonite received $ 50,000 cash and issued common shares to shareholders 4 Purchased supplies , $ 5,000 , and equipment , $ 2,500 on account 5 Performed checkup services , and received cash , $ 2,500 7 Paid cash to acquire land for an office site , $ 25,000 11 Performed a therapy session , and billed the customer $ 2500 16 Paid for the equipment , purchased Oct 4 on account 17 Paid the telephone bill , $ 150 18 Received partial payment from client on account , $ 2000 22 Paid the water and electricity bills , $ 500 29 Received $ 5,000 cash for conducting a workshop on " Healthy Living " 31 Paid employee salary , $ 4,000 31 Declared and paid dividends of $ 4,500 Requirements : Record each transaction in the journal . Key each transaction by date . Prepare the trial balance of Orgonite , at Jan 31 , 2020 .
Record the following selected transactions in general journal form for Sun Orthopedic Clinic, Inc.Include a brief explanation of the transaction as part of each journal entry.Oct. 1 The clinic issued 4,000 additional shares of capital stock to Doctor Soges at $50 pershare.Oct. 4 The clinic purchased diagnostic equipment. The equipment cost $75,000, of which$25,000 was paid in cash; a note payable was issued for the balance.
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Question: ABC Company started year 1 with $270,000 in its cash and common stock accounts. During year 1, ABC paid $202,500 cash for employee compensation and $62,100 cash for materials. a. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming ABC used the labor and materials to make 1,500 chairs. Further, assume that ABC sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement. Total assets Total expenses Name of the expense Cost of goods sold