I'll Pay Your Bills Chart of Accounts 101 Bank 201 Bank Loan 105 A/R - Jenkins and Co 205 A/P- Office Equippers 110 Office Supplies 301 J.P. Timberlake, Capital 115 Office Equipment 305 J.P. Timberlake, Drawings 120 Automobile 401 Fees Earned 405 Advertising Expense 410 Truck Expense 415 Donation Expense 420 Miscellaneous Expense 425 Utilities Expense Figure out the starting capital amount for J.P. Timberlake. Remember to record the opening amounts in the general journal and then in your t-accounts. For each of the transactions listed below, you must journalize them in the general journal Transactions: October: Purchased $300 of office supplies for cash. Issued a cheque in payment. Issued a cheque for $50 for an advertisement in a local newspaper. Received a bill from Office Equippers for the purchase of a computer at a total cost of $1,100 on account. Mr. Timberlake was hired by a client, Jenkins and Co. At the conclusion of the work, Mr. Timberlake charged Jenkins and Co. $900 and issued a bill for this service performed on account. B. Masters, a client, paid $100 in cash for a bookkeeping service. W. Shields, another client, paid $75 in cash for having her tax return prepared.  B. Masters, a client, paid $100 in cash for a bookkeeping service. W. Shields, another client, paid $75 in cash for having her tax return prepared. The total of $175 was deposited in the bank.

1. A cheque for $100 was sent as a donation to the Canadian Red Cross.
2. A cheque for $300 was received from Jenkins and Co. on account.
3. A cheque for $500 was issued to Office Equippers in partial payment of the balance of its account.
4. Paid Louis' Service Station $120 for gasoline and repairs to the business automobile. A cheque was issued right away.
5. Performed an accounting service for T. Wu and received $200 cash in full payment. The owner, J.P. Timberlake, did not deposit this money in the bank, but kept it for his personal use.
6. Issued a cheque for $750 in payment of the rent for the month of October.
7. Purchased $120 of office supplies from Home & Office. The purchase was paid for by cheque.
8. Issued a cheque for $50 for an advertisement in a local newspaper. 
9. Sold services for $600 to Jenkins and Co. for accounting services. Jenkins and Co. had 30 days to pay this bill.
10. Issued a cheque for $70 for postage stamps. (Note: Stamps are not considered supplies.)
11. Issued a cheque for $1,500 to the owner for his personal use.
12. Borrowed $5,000 from the bank, repayable on demand.

 

C. Post  each transaction to the T-Accounts.  Remember to include the date in the light grey column on the t-accounts  Calculate the total amounts of each account when you are done.

D. Balance the ledger by means of a trial balance

E. Prepare an income statement for the period, which is the month of October 2020.

F. Prepare a Statement of Owners Equity

G. Prepare a Balance Sheet