1.
Set up general ledger accounts by entering the balances as of November 1.
1.
Explanation of Solution
General ledger:
General ledger is a record of all accounts of assets, liabilities, and
(Figure 1)
(Figure 2)
(Figure 3)
(Figure 4)
(Figure 5)
(Figure 6)
(Figure 7)
(Figure 8)
(Figure 9)
(Figure 10)
(Figure 11)
(Figure 12)
(Figure 13)
(Figure 14)
2.
Prepare
2.
Explanation of Solution
Prepare journal entry to record the given transactions.
Date | Accounts title and explanation |
Post. Ref. |
Debit ($) |
Credit ($) |
November 1 | Rent Expense | 521 | 300 | |
Cash | 101 | 300 | ||
(To record the payment on November ) | ||||
November 2 | Tailoring supplies | 141 | 150 | |
Accounts payable | 202 | 150 | ||
(To record the purchase of tailoring supplies on account) | ||||
November 3 | Tailoring Equipment | 183 | 300 | |
Accounts payable | 202 | 300 | ||
(To record the purchase machine on account) | ||||
November 5 | Cash | 101 | 100 | |
| 122 | 300 | ||
Tailoring fees | 401 | 400 | ||
(To record the amount earned on tailoring fees) | ||||
November 8 | Advertising expense | 512 | 13 | |
Cash | 101 | 13 | ||
(To record the payment made on the newspaper ad) | ||||
November 9 | Phone Expense | 525 | 28 | |
Cash | 101 | 28 | ||
(To record the payment of phone bill) | ||||
November 10 | Electricity Expense | 533 | 21 | |
Cash | 101 | 21 | ||
(To record the payment of electricity bill) | ||||
November 11 | Cash | 101 | 200 | |
Accounts Receivable | 122 | 200 | ||
(To record the cash to be received on account) | ||||
November 12 | Cash | 101 | 200 | |
Accounts receivable | 122 | 250 | ||
Tailoring Fees | 401 | 450 | ||
(To record the cash on tailoring fees) | ||||
November 15 | Wages Expense | 511 | 400 | |
Cash | 101 | 400 | ||
(To record the payment made to the employee) | ||||
November 16 | Accounts Payable | 202 | 100 | |
Cash | 101 | 100 | ||
(To record the payment of cash on account) | ||||
November 17 | Miscellaneous Expense | 549 | 12 | |
Cash | 101 | 12 | ||
(To record the payment made for magazine subscription) | ||||
November 19 | Cash | 101 | 300 | |
Accounts receivable | 122 | 150 | ||
Tailoring Fees | 401 | 450 | ||
(To record the cash on tailoring fees) | ||||
November 23 | Cash | 101 | 300 | |
Accounts Receivable | 122 | 300 | ||
(To record the amount of cash received on account) | ||||
November 24 | Advertising expense | 512 | 13 | |
Cash | 101 | 13 | ||
(To record the payment made on the newspaper ad) | ||||
November 26 | Miscellaneous Expense | 549 | 12 | |
Cash | 101 | 12 | ||
(To record the payment made for magazine subscription) | ||||
November 27 | Cash | 101 | 200 | |
Accounts receivable | 122 | 400 | ||
Tailoring Fees | 401 | 600 | ||
(To record the cash on tailoring fees) | ||||
November 30 | Cash | 101 | 400 | |
Accounts Receivable | 122 | 400 | ||
(To record the cash received on account) |
(Table 1)
3.
3.
Explanation of Solution
Post the entries to the general ledger.
(Figure 18)
(Figure 19)
(Figure 20)
(Figure 21)
(Figure 22)
(Figure 23)
(Figure 24)
(Figure 25)
(Figure 26)
(Figure 27)
(Figure 28)
(Figure 29)
(Figure 30)
(Figure 31)
4.
Prepare a
4.
Explanation of Solution
Prepare a trial balance.
Company T | |||
Trial balance | |||
November 31, 20.. | |||
Accounts | Account No. | Debit ($) | Credit ($) |
Cash | 101 | 7,012 | |
Accounts Receivable | 122 | 684 | |
Tailoring Supplies | 141 | 1,150 | |
Tailoring Equipment | 183 | 4,100 | |
Accounts Payable | 202 | 4,475 | |
Person A’s, Capital | 311 | 6,130 | |
Person A’s, Drawing | 312 | 800 | |
Tailoring Fees | 401 | 5,500 | |
Wages Expense | 511 | 1,200 | |
Advertising Expense | 512 | 60 | |
Rent Expense | 521 | 900 | |
Phone Expense | 525 | 88 | |
Electricity Expense | 533 | 65 | |
Miscellaneous Expense | 549 | 46 | |
Total | 16,105 | 16,105 |
(Table 2)
Therefore, the total of the debit and credit column of the trial balance reported an amount of $16,105.
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