Question

On October 1, 2019, Helen Kennedy opened an advertising agency. DATE TRANSACTIONS Oct. 1 Helen Kennedy invested $61,000 cash in the business. 2 Paid October office rent of $3,ese; issued Check 1001. 5 Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days. 6 Issued Check 1ee2 for $3,25e to purchase art equipment. 7 Purchased supplies for $1,600; paid with Check 103. 10 Issued Check 1984 for $490 for office cleaning service. Performed services for $4,158 in cash and $1,958 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $299. 18 Purchased a computer for $3,250 from Office Furniture Mart, Inc., Invoice 7108 issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.) payment on 2e Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., a account for Invoice 6704. 26 Perforced services for $4,450 on credit. 2) Paid $270 for monthly telephone bill; issued Check 1007 30 Received $3,750 in cash from credit customers 30 Mailed Check 100% to pay the monthly utility bill of $345. 30 Issued Checks 100-1011 for 58,ese for salaries Required: 1. Journalize the above transactions 2. Post the above transactions to the ledger accounts Analyze: What is the balance of account 202 in the general ledger? Complete this question by entering your answers in the tabs below. New < Prey 2016

Answer 1

Hi,

It would have been proper if you can specify your question. I assume that you want us to verify the solution which you have calculated.

Following are my observations :

a. You have used Cash account every where even though there is transaction through cheque. So you may replace the bank account GL where transaction is through cheque

b. There is clerical error in inputting the amount for the transaction carried out on 18th Oct. The cheque payment is 1775 however you have entered this as 1175. As a result of this the accounts payable value have also inflated by Rs.600 (The value captured in answer is 1875 instead of 1275)

c. In view of comments provided in "b" the accounts payable balance will be 8225 (In your answer it is coming to 8825 due to error commented in point "b"

Hope this is helpful and await your positive response on this.