Jim Andrews opened a delivery business in March. He rented a small office and has a part-time
Question:
Jim Andrews opened a delivery business in March. He rented a small office and has a part-time assistant. His trial balance shows accounts for the first three months of business.
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Andrews' transactions for the month of June are as follows:
June 1 Paid rent, $300.
2 Performed delivery services for $300: $100 in cash and $200 on account.
4 Paid for newspaper advertising, $15.
6 Purchased office supplies on account, $180.
7 Received cash for delivery services rendered, $260.
9 Paid cash on account (truck payment), $200.
10 Purchased a copier (office equipment) for $700: paid $100 in cash and put $600 on account.
11 Made a contribution to the Red Cross (charitable contributions), $20.
12 Received cash for delivery services rendered, $380.
13 Received cash on account for services previously rendered, $100.
15 Paid a part-time worker, $200.
16 Paid electric bill, $36.
18 Paid telephone bill, $46.
19 Received cash on account for services previously rendered, $100.
June 20 Andrews withdrew cash for personal use, $200.
21 Paid for gas and oil, $32.
22 Made payment on account (for office supplies), $40.
24 Received cash for services rendered, $340.
26 Paid for a magazine subscription (miscellaneous expense), $15.
27 Received cash for services rendered, $180.
27 Received cash on account for services previously rendered, $100.
29 Paid for gasoline, $24.
30 Paid a part-time worker, $200.
REQUIRED
1. Set up general ledger accounts by entering the balances as of June 1.
2. Journalize the transactions for June in a two-column general journal. Use the following journal pages: June 1–10, page 7; June 11–20, page 8; June 21–30, page 9.
3. Post the entries to the general ledger.
4. Prepare a trialbalance.
Step by Step Answer:
2 For 1 and 3 1 and 3 4 DATE 20 June 1 Rent Expense Cash 2 Cash Pa...View the full answer
