Carin owns and operates the Carin Consulting business. On March 1, 2015 her ledger showed the following account balances. (Ignore GST)

Accounts with Debit Balances Accounts with Credit Balances

The following transactions and adjustments occurred in March 2015:

1. The owners contributed $6,000 cash to the business.

2. Collected $22,000 on account (accounts receivable) from a customer.

3. Billed (invoiced) customer for consulting services $9,000 (on account)

4. Carried out consulting services for a customer and received cash $5,000.

5. Purchased supplies on credit $7,000.

6. Received $1,000 interest.

7. Paid $3,000 to creditor (accounts payable) for goods purchased in January.

8. Paid March?s salaries $4,000.

9. Received an invoice for March?s advertising expense to be paid in May $2,000.

10. Sold supplies that cost $4,000 to a friend at a cost of $4,000 (no profit or loss).

11. Distributed $3,000 in dividends (out of Retained Earnings) to owners.

12. Received electricity bill for the electricity used in March $8,000 (did not pay it).

13. Purchased land $540,000 by arranging a mortgage with the bank

14. Recorded rent expense for March, $6,000 (note; on March 1, four months' rent of $24,000 was prepaid).

15. Counted supplies on hand March 31, $5,000 remained (remember transactions ?5? and

?10? above as well as the opening balance).

Re q u i red

A. Record the above transactions/adjustments in a general journal using only the ledger accounts given.

B. Post to the ledger, (remembering first to enter the opening balances).

Transcribed Image Text:

Cash Prepaid Rent Supplies Accounts Receivable Land Rent Expense Salaries Expense Supplies Expense Electricity Expense Advertising Expense 0 0 0 25,000 Accounts Payable 24,000 Electricity Payable 7,000 Mortgage 56,000 Contributed capital 70,000 Retained earnings 182,000 Consulting Service Revenue 0 Interest Revenue 0 34,000 2,000 56,000 45,000 45,000 182,800 Cash Prepaid Rent Supplies Accounts Receivable Land Rent Expense Salaries Expense Supplies Expense Electricity Expense Advertising Expense 0 0 0 25,000 Accounts Payable 24,000 Electricity Payable 7,000 Mortgage 56,000 Contributed capital 70,000 Retained earnings 182,000 Consulting Service Revenue 0 Interest Revenue 0 34,000 2,000 56,000 45,000 45,000 182,800

Answer rating: 100% (QA)

A Journal Debit Credit 1 Cash 6000 Contributed capital owner Equity 6000 2 Cash 22000 Accounts recei... View the full answer