On October 1, 2019, Helen Kennedy opened an advertising agency. She plans to use the chart of
Question:
On October 1, 2019, Helen Kennedy opened an advertising agency. She plans to use the chart of accounts listed below.
INSTRUCTIONS
1. Journalize the transactions. Number the journal page 1, write the year at the top of the Date column, and include a description for each entry.
2. Post to the ledger accounts. Before you start the posting process, open accounts by entering account names and numbers in the headings. Follow the order of the accounts in the chart of accounts.
ASSETS ___________________________REVENUE
101 Cash...................................401 Fees Income
111 Accounts Receivable.....................EXPENSES
121 Supplies...............511 Office Cleaning Expense
141 Office Equipment.................514 Rent Expense
151 Art Equipment...................517 Salaries Expense
LIABILITIES....................520 Telephone Expense
202 Accounts Payable..............523 Utilities Expense
OWNER'S EQUITY
301 Helen Kennedy, Capital
302 Helen Kennedy, Drawing
DATE TRANSACTIONS
Oct. 1 Helen Kennedy invested $70,000 cash in the business.
2 Paid October office rent of $4,000; issued Check 1001.
5 Purchased desks and other office furniture for $18,000 from Office
Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.
6 Issued Check 1002 for $4,100 to purchase art equipment.
7 Purchased supplies for $1,670; paid with Check 1003.
10 Issued Check 1004 for $800 for office cleaning service.
12 Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.)
15 Returned damaged supplies for a cash refund of $300.
18 Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108;
issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days.
(Use one compound entry.)
20 Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account
for Invoice 6704.
26 Performed services for $4,800 on credit.
27 Paid $375 for monthly telephone bill; issued Check 1007.
30 Received $4,200 in cash from credit customers.
30 Mailed Check 1008 to pay the monthly utility bill of $1,080.
30 Issued Checks 1009-1011 for $9,000 for salaries.
Analyze: What is the balance of account 202 in the general ledger?
Step by Step Answer:
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina