The Wellness Catering Service had the following transactions in July, its first month of operations 1 Kelly Foster contributed personal funds in exchange for common stock to begin the business. $40,000 Purchased the following for cash: (make a compound entry): 2 Delivery van Equipment Supplies 3 4 Paid one-year premium on liability insurance policy Entered into a contract with a local service club to cater weekly luncheon meetings for one year at $790 per month. Received 6 months fees in advance 5 Paid rent for July, August, and September 6 Paid employee's two weeks' wages (five-day week) 7 Billed customers for services rendered 8 Purchased supplies on account 9 Paid employee's two weeks' wages 10 Paid July bill for gas, oil and repairs on delivery van 11 Collected on account from customers 12 Billed customers for services rendered 13 Foster received a dividend 3,780 3,240 5,600 5,100 4,740 6,345 5,700 8,500 7,400 5,700 730 7,700 8,800 5,900
The Wellness Catering Service had the following transactions in July, its first month of operations 1 Kelly Foster contributed personal funds in exchange for common stock to begin the business. $40,000 Purchased the following for cash: (make a compound entry): 2 Delivery van Equipment Supplies 3 4 Paid one-year premium on liability insurance policy Entered into a contract with a local service club to cater weekly luncheon meetings for one year at $790 per month. Received 6 months fees in advance 5 Paid rent for July, August, and September 6 Paid employee's two weeks' wages (five-day week) 7 Billed customers for services rendered 8 Purchased supplies on account 9 Paid employee's two weeks' wages 10 Paid July bill for gas, oil and repairs on delivery van 11 Collected on account from customers 12 Billed customers for services rendered 13 Foster received a dividend 3,780 3,240 5,600 5,100 4,740 6,345 5,700 8,500 7,400 5,700 730 7,700 8,800 5,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
Transcribed Image Text:Transaction Entries, Posting, Trial Balance, and Adjusting Entries
The Wellness Catering Service had the following transactions in July, its first month of operations
1 Kelly Foster contributed personal funds in exchange for common stock to begin the business. $40,000
Purchased the following for cash: (make a compound entry):
2
Delivery van
Equipment
Supplies
3
4
Paid one-year premium on liability insurance policy
Entered into a contract with a local service club to cater
weekly luncheon meetings for one year at $790
per month. Received 6 months fees in advance
5 Paid rent for July, August, and September
6 Paid employee's two weeks' wages (five-day week)
7
Billed customers for services rendered
8 Purchased supplies on account
9 Paid employee's two weeks' wages
10 Paid July bill for gas, oil and repairs on delivery van
11 Collected on account from customers
12 Billed customers for services rendered
13 Foster received a dividend
3,780
3,240
5,600
5,100
4,740
6,345
5,700
8,500
7,400
5,700
730
7,700
8,800
5,900
Required
Using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Delivery Van; Accumulated Depreciation-Delivery Van; Equipment; Accumulated Depreciation-Equipment;
Accounts Payable; Wages Payable; Unearned Catering Fees; Common Stock; Dividends; Retained Earnings; Catering Fees Revenue; Wages Expense; Rent Expense; Supplies Expense; Insurance Expense; Delivery
Van Expense; Depreciation Expense-Delivery Van; and Depreciation Expense-Equipment.
a. Record July transactions in the general journal.
b. Post transactions to the ledger accounts.
c. Prepare an unadjusted trial balance as of July 31.
d. Record adjusting journal entries in the general journal and post to the ledger accounts in part b.
Transcribed Image Text:(1)
(2)
(3)
(4)
(5)
(6)
(9)
(10)
(11)
(13)
Bal
(8)
Bal
(10)
Bal
(16)
Bal
Cash
0
0
0
0
0
0
0
0
Accounts Payable
0
0
Delivery Van Expense
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Depr.Exp.-Delivery Van
0
0
0
0
(7)
(11)
(12)
Bal
(1)
Bal
(17)
Bal
(18)
Bal
Accounts Receivable
0
0
0
Common Stock
0
0
0
0
0
0
0
0
Accum Depr.-Equipment
Insurance Expense
0
0
0
0
0
0
0
0
(2)
(8)
(14)
Bal
(7)
(12)
(20)
Bal
(17)
Bal
(2)
Bal
Supplies
0
O
0
0
Catering Fees Revenue
0
0
0
0
0
0
0
0
Depr. Exp.-Equipment
Equipment
0
0
0
0
0
0
0
(4)
(20)
Bal
(6)
(9)
(15)
Bal
(13)
Bal
(3)
(18)
Bal
Unearned Catering Fees
0
0
0
0
0
0
Wages Expense
0
0
0
Dividends
0
0
Prepaid Insurance
0
0
0
0
0
0
0
0
0
0
0
0
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