Unit 2 – Solution to PR2-3A

12,761 views

Published on

Published in: Economy & Finance, Business
0 Comments
6 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
12,761
On SlideShare
0
From Embeds
0
Number of Embeds
822
Actions
Shares
0
Downloads
19
Comments
0
Likes
6
Embeds 0
No embeds

No notes for slide

Unit 2 – Solution to PR2-3A

  1. 1. Unit 2 – Solution to PR2-3A<br />
  2. 2. Journalize Entries<br />Entry 1: Kathleen transferred cash from a personal bank account to an account to be used for the business, $17,000. <br />Journal Entry<br />Cash 17,000<br /> Kathleen Alvarez, Capital 17,000<br />
  3. 3. Journalize Entries, cont.<br />Entry 2: Paid rent for period of April 2 to end of month, $3,400. <br />Journal Entry<br />Rent Expense 3,400<br /> Cash 3,400<br />
  4. 4. Journalize Entries, cont.<br />Entry 3: Purchased office equipment on account, $10,000. <br />Journal Entry<br />Equipment 10,000<br /> Accounts Payable 10,000<br />
  5. 5. Journalize Entries, cont.<br />Entry 4: Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder. <br />Journal Entry<br />Truck 21,000<br /> Cash 2,000<br /> Note Payable 19,000<br />
  6. 6. Journalize Entries, cont.<br />Entry 5: Purchased supplies for cash, $1,800 <br />Journal Entry<br />Supplies 1,800<br /> Cash 1,800<br />
  7. 7. Journalize Entries, cont.<br />Entry 6: Received cash for jobs completed, $13,000. <br />Journal Entry<br />Cash 13,000<br /> Fees Earned 13,000<br />
  8. 8. Journalize Entries, cont.<br />Entry 7: Paid annual premiums on property and casualty insurance, $1,800. <br />Journal Entry<br />Prepaid Insurance 1,800<br /> Cash 1,800<br />
  9. 9. Journalize Entries, cont.<br />Entry 8: Recorded jobs completed on account and sent invoices to customers, $9,000.<br />Journal Entry<br />Accounts Receivable 9,000<br /> Fees Earned 9,000<br />
  10. 10. Journalize Entries, cont.<br />Entry 9: Received an invoice for truck expenses, to be paid in April, $1,000. <br />Journal Entry<br />Truck Expense 1,000<br /> Accounts Payable 1,000<br />
  11. 11. Other Comments<br />Continue with remainder of entries<br />Post each transaction to the general ledger under each account<br />Prepare an unadjusted trial balance – a listing of all general ledger accounts with their current total balance<br />Trial Balance accounts are listed/grouped by Account Type in the following order: Assets, Liabilities, Owners Equity, Revenues, Expenses<br />Contact me – etruban@lfcc.edu with questions<br />

×