Grete Rodewald formed a dog grooming and training business called Grete Kanines on September 1, 2021. After
Question:
Grete Rodewald formed a dog grooming and training business called Grete Kanines on September 1, 2021. After consulting with a friend who had taken introductory accounting, Grete created a chart of accounts for the business as follows: No. 101 Cash; No. 112 Accounts Receivable; No. 130 Prepaid Insurance; No. 151 Equipment; No. 201 Accounts Payable; No. 209 Unearned Revenue; No. 301 G. Rodewald, Capital; No. 306 G. Rodewald, Drawings; No. 400 Service Revenue; No. 610 Advertising Expense; No. 726 Rent Expense; and No. 737 Utilities Expense. During September, the following events and transactions occurred:
Journalize transactions, post, and prepare trial balance.
Sept. 1 | Grete transferred $9,630 from her personal bank account to a bank account under the company name Grete Kanines. | |
2 | Signed a one-year rental agreement for $690 per month. Paid the first month's rent. | |
2 | Paid $750 for a one-year insurance policy effective September 1, 2021. | |
5 | Purchased $2,640 of equipment on credit. | |
7 | Paid $420 for advertising in several community newsletters in September. | |
13 | Collected $500 cash for providing dog grooming services. | |
21 | Attended a dog show and provided $800 of dog grooming services for one of the major kennel owners. The kennel owner will pay the amount owing within two weeks. | |
24 | Collected $540 from the kennel owner for the services provided on September 21. The kennel owner promised to pay the rest on October 2. | |
28 | Paid $210 for utilities for the month of September. | |
29 | Paid $1,470 of the amount owed from the September 5 equipment purchase. | |
30 | Received $860 cash for dog training lessons that will start on October 10. | |
30 | Collected $1,045 cash for providing dog grooming services. | |
30 | Paid the owner, Grete Rodewald, $1,490 for her personal use. |
Instructions
a. Journalize the transactions.
b. Post the journal entries to the ledger accounts. (Use the ledger format provided in Illustration 2.20.)
c. Prepare a trial balance as at September 30, 2021.
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver