Question

Date Account Titles and Explanation Debit Credit Aug. Prepaid Advertising 440 Cash IN440 Aug. 3 Prepaid Rent | Cash 380 Aug. 6 Cash 3,040 | Accounts Receivable 3,040 Aug. 10 salaries Expense 1,450|| Salaries Payable 00 T Cash IN 2,910 Aug. 13 Cash 1,1001 T Service Revenue T 4,100 TAug. 15 TEquipment 1,910 T

On August 1, 2018, the beginning of its current fiscal year,

Accounts payable		$2,500		Interest receivable		20
Accounts receivable		4,740		Note receivable, due October 31, 2018		4,000
Accumulated depreciation—equipment		2,030		Retained earnings		6,040
Cash		5,520		Salaries payable		1,460
Common shares		12,000		Supplies		1,030
Equipment		10,100		Unearned revenue		1,380

(b)

Prepare T accounts, enter any opening balances, post the general journal entries and calculate end balances. (Post entries in the order of journal entries presented in the previous part. If the ending balance is 0 select Bal for the date and enter 0 for the normal balance for that account.)

Cash

Accounts Receivable

Prepaid Advertising

Supplies

Prepaid Rent

Note Receivable

Interest Receivable

Equipment

Accumulated Depreciation - Equipment

Accounts Payable

Salaries Payable

Unearned Revenue

Common Shares

Retained Earnings

Dividends Declared

Service Revenue

Salaries Expense

Answer 1

Dividend declared entry not provided. Assumed the credit account is cash since dividend payable account is not provided.

Cash To balance b/ d 5 520 By Prepaid Advertising To account receivable 3040 By Prepaid Rent To service revenue 4100 By Salaries Expense To unearned revenue 750 By Salaries Payable By accounts payable By salaries expense By balance c/d 13410 440 380 1450 1460 1910 3110 4660 13410 Accounts Receivable To balance b/d 4740 By cash To service revenue 4400 By balance c/d 3040 6100 9140 9140 To Cash Prepaid Advertising 440 By balance c/d 440 Supplies 1030 By Balance c/d 1750 To balance b/d To accounts payable 1750 1750 Prepaid Rent 380 By Balance c/d To Cash 380 380 380 Note Receivable 4000 By Balance c/d To balance b/d 4000 4000 4000

Interest Receivable 20 By Balance c/d To balance b/d 20 Equipment 10,100 By Balance c/d 1910 To balance b/d To accounts payable 12,010 12,010 12,010 To Balance c/d Accumulated Depreciation- Equipment 2030 By balance b/d 2030 2030 2030 To cash To balance c/d Accounts Payable 1910 By Balance b/d 3220 By equipment By supplies 2500 1910 720 5130 5130 Salaries Payable 1460 By balance b/d To Cash 1,460 1460 1460 To balance c/d Unearned Revenue 2,130 By balance b/d By Cash 1,380 750 2.130 2,130

To balance c/d Unearned Revenue 2,130 By balance b/d By Cash 1,380 750 2,130 2,130 To balance c/d Common Shares 12,000 By balance b/d 12,000 12,000 12,000 To balance c/d Retained Earnings 6040 By balance b/d 6,040 6040 6040 Dividend Declared 550 By balance c/d To Cash 550 550 550 To balance c/d Service Revenue 8500 By Cash By accounts receivable 4100 4400 8500 8500 Salaries Expense 1450 By balance c/d 3110 To Cash To Cash 4560 4560 4560