Question

Date Account Debit Credit Jan 1 2013 $ 12,000 Prepaid Rent Cash (To record payment of insurance) $ 12,000 Jan 4 2013 $ 1.900 Cash Service Revenue (To record service revenue) $ 1,900 Jan 9 2013 $ 850 Advertising Expense Cash (To record advertising expense payment) $ 850 Jan 10 2013 $ 75 Office Supplies Expense Cash To record purchase of office supplies) $ 75 $ 2,725 Jan 14 2013 Cash Service Revenue (To record service revenue) $ 2.725 Jan 20 2013 S 660 Telephone Expense Cash (To record telephone expense) $ 660 $ 2,925 Jan 20 2013 Utilities Expense Accounts Payable (To record utilities expense) $ 2,925 $ 3,750 Jan 27 2013 Accounts Receivable Service Revenue (To record service revenue) $ 3,750 S 1,500 Jan 28 2013 Advertising Expense Cash (To record advertising expense payment) $ 1,500 Adjusting entries: Date Account Debit Credit $ 1,000 Jan 31 2013 Rent Expense Prepaid Rent (To record rent expense) $12,000/12 $ 1,000 Jan 31 2013 $ 1,000 1&L Depreciation Expense Accumulated Depreciation - Vehicles (To record deprciation Expense) $ 1,000 Jan 31 2013 S 100 Depreciation Expense Accumulated Depreciation - Equipment (To record deprciation Expense) $ 100

Answer 1

3. Posting journals to General Ledger:

Credit Balar 12,000 Date Account: Jan 1, 2013 Jan 4, 2013 Jan 9, 2013 Jan 10, 2013 Jan 14, 2013 Jan 20, 2013 Jan 28, 2013 Jan 31, 2013 Posting Journals to General Ledger Item Debit Cash Prepaid Rent Service Revenue 1,900 Advertising Expense Office Supplies Expense Service Revenue 2,725 Telephone Expense Advertising Expense Balance c/f 10,460 15,085 Balance c/d 850 75 12,000 cr 10,100 Cr 10,950 cr 11,025 cr 8,300 Cr 8,960 Cr 10,460 сr 660 1,500 15,085 10,460 Feb 01, 2013 Account: Jan 1, 2013 Jan 31, 2013 Jan 31, 2013 Prepaid Rent Cash Rent Expense 12,000 12,000 dr 11,000 dr Balance c/f 1,000 11,000 12,000 12,000 11,000 Feb 01, 2013 Balance c/d 1,900 Account: Jan 4, 2013 Jan 14, 2013 Jan 27, 2013 Jan 31, 2013 Service Revenue Cash Cash Accounts Receivable Balance c/f 2,725 1,900 cr 4,625 cr 8,375 Cr 3,750 8,375 8,375 8,375 8,375 Feb 01, 2013 Balance c/d Account: Jan 9, 2013 Jan 28, 2013 Jan 31, 2013 Advertising Expense Cash Cash Balance c/f 850 1,500 850 dr 2,350 dr 2,350 2,350 2,350 2,350 Feb 01, 2013 Balance c/d Account: Jan 10, 2013 Jan 31, 2013 Office Supplies Expense Cash Balance c/f 75 dr 75 Feb 01, 2013 Balance c/d Account: Jan 20, 2013 Jan 31, 2013 Telephone Expense Cash Balance c/f 660 660 dr 660 660 660 Feb 01, 2013 Balance c/d 660 Account: Jan 20, 2013 Jan 31, 2013 Utilities Expense Accounts Payable Balance c/f 2,925 2,925 dr 2,925 2,925 2,925 2,925 Feb 01, 2013 Balance c/d Account: Jan 20, 2013 Jan 31, 2013 Accounts Payable Utilities Expense Balance c/f 2,925 2,925 cr 2,925 2,925 2,925 2,925 Feb 01, 2013 Balance c/d Account: Jan 27, 2013 Jan 31, 2013 Accounts Receivable Service Revenue Balance c/f 3,750 3,750 dr 3,750 3,750 3,750 3,750 Feb 01, 2013 Balance c/d Account: Jan 31, 2013 Jan 31, 2013 Rent Expense Prepaid Rent 1,000 1,000 dr Balance c/f 1,000 1,000 1,000 1,000 Feb 01, 2013 Balance c/d Account: Jan 31, 2013 Jan 31, 2013 Jan 31, 2013 Depreciation Expense Accumulated Depreciation - Vehicles Accumulated Depreciation - Equipment Balance c/f 1,000 100 1,000 dr 1,100 dr 1,100 1,100 1,100 1,100 Feb 01, 2013 Balance c/d Account: Jan 31, 2013 Jan 31, 2013 Jan 31, 2013 Accumulated Depreciation Depreciation Expense Depreciation Expense Balance c/f 1,000 100 1,000 cr 1,100 cr 1,100 1,100 Feb 01, 2013 Balance c/d 1,100 1,100 22,860 22,860

4. Balances in General ledger accounts reconciled:

Debit Credi 10,460 11,000 8,375 2,350 75 Account Cash Prepaid Rent Service Revenue Advertising Expense Office Supplies Expense Telephone Expense Utilities Expense Accounts Payable Accounts Receivable Rent Expense Depreciation Expense Accumulated Depreciation 660 2,925 2,925 3,750 1,000 1,100 - 22,860 1,100 22,860