Example of a Journal Entry:

Date Debit Credit Db Cr

1 January Building $2000 Accounts Payable $2000

Explanation Debit Building. Credit Accounts Payable. Building is an asset. Assets are increased. Accounts Payable is a liability. Liabilities are increased

1. Donegan's Lawn Care Service began operations in July 2015.

a) Record Dogies transactions in general journal form.

July 18 Issued 1000 shares of capital stock to Patrick Donegan for $5000

.Date Debit Credit Db Cr

July 22 Purchased office supplies on account for $250

Date Debit Credit Db Cr

July 23 Purchased moving equipment for $1500, paying $500 cash and issuing a 60-day

note payable for the remaining balance

Date Debit Credit Db Cr

July 24 Paid $30 cash for gasoline.

Date Debit Credit Db Cr

July 25 Billed Lost Creek Cemetery $200 for mowing services. The entire amount is due July 30

Date Debit Credit Db Cr

July 26 Billed Golf View Condomimiums $150 for mowing services. The entire amount is due

August 1.

Date Debit Credit Db Cr

July 30 Collected $50 from Lost Creek Cemetery for mowing services provided on July 25.

Date Debit Credit Db Cr

July 31 Paid $70 salary to employee Teddy Grim for work performed in July.

Date Debit Credit Db Cr

July 31 Paid $100 for maintenance and repair services on the mowing equipment.

Date Debit Credit Db Cr

July 31 Paid a $150 dividends in cash

Date Debit Credit Db Cr

July 31 Paid $50 for an advertisement in the local newspaper

Date Debit Credit Db Cr

The account ttles used by Dogies are:

Cash Mowing Revenue

Accounts Receivable Retained Earnings

Office Supplies Maintenance Expense

Mowing Equipment Accounts Payable

Salaries Expense Notes Payable Dividends Capital Stock Advertising Expense Fuel Expense

b) Post each entry to the appropriate ledger accounts (use the T-account format given below)

c) Prepare a trial balance dated July 31, 2015 for Donegan's Lawn Care Service.

DONEGAN'S LAWN CARE SERVICE

TRIAL BALANCE

JULY 31, 2015

Debit Credit

Total

d) Prepare a balance sheet dated January 31, 2020. Please fill the table below. Please calculate retained earnings.

DONEGAN'S LAWN CARE SERVICE

BALANCE SHEET

At JULY 31, 2015

Assets: Liabilities and Owners Equity:

Owners Equity:

Total Total

2. Sweeney and Allen, a large marketing firm, adjusts its accounts at the end of each month. The following information is available for the year ending December 31, 2015. Make the necessary adjustment entries.

a) A bank loan had been obtained on December 1. Accrued interest on the loan at December 31 amounts to $2000. No interest expense has been recorded.

Date Debit Credit Db Cr

b) Depreciation of the firm's office equipment buiding is based on an estimated life of 20 years. The building was purchased on Januar, 2012 for $600,000.

Date Debit Credit Db Cr

c) Sweeney and Allen provided marketing services to customer but have not received any money yet. Accrued, but unbilled, revenue during December amounts to $60,000.

Date Debit Credit Db Cr

d) On March 1, the firm paid $3600 to reew a 12-month insurance policy. The entire amount was recorded as Prepaid Insurance.

Date Debit Credit Db Cr

e) The firm received $12,000 from King Biscuit Company in advance of developeing a six-month marketing campaign. The entire amount was initially recorded as Unearned Revenu. At December 31, $7000 had actually been earned by the firm

Date Debit Credit Db Cr

f) The company's policy to pay its employees every Friday. Since December 31 fell on a Tuesday, there was an accrued liability for slaries amounting to $2000.

Date Debit Credit Db Cr