Question

Business transactions completed by Hannah Venedict during the month of September are as follows . Venedict invested $82,000 cash along with office equipment valued at $22,000 in a new sole proprietorship named HV Consulting The company purchased land valued at $45,000 and a building valued at $150.000. The purchase is paid with $25.000 cash and a long-term note payable for $170,000. c. The company purchased $1.600 of office supplies on credit. d. Venedict invested her personal automobile in the company. The automobile has a value of $16,900 and is to be used exclusively in the business. e. The company purchased $5,000 of additional office equipment on credit. f. The company paid $1,800 cash salary to an assistant. 9. The company provided services to a client and collected $7,800 cash. h. The company paid $650 cash for this month's utilities 1. The company paid $1,600 cash to settle the account payable created in transaction. J. The company purchased $20,100 of new office equipment by paying $20,100 cash. k. The company completed $6,000 of services for a client, who must pay within 30 days. 1. The company paid $1,900 cash salary to an assistant m. The company received $4,000 cash in partial payment on the receivable created in transaction k. n. Venedict withdrew $2,900 cash from the company for personal use. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101): Accounts Receivable (106): Office Supplies (108): Office Equipment (163) Automobiles (164); Building (170): Land (172): Accounts Payable (201): Notes Payable (250): H. Venedict, Capital (301); H. Venedict, Withdrawals (302); Fees Earned (402): Salaries Expense (601): and Utilities Expense (602). 2. Post the journal entries from part 1 to the ledger accounts 3. Prepare a trial balance as of the end of September Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare general Journal entries to record these transactions using the following titles: Cash (101) Accounts Receivable (106) Office Supplies (108): Office Equipment (163): Automobiles (164) Building (170): Land (172): Accounts Payable (201): Notes Payable (2507 H. Venedict, Capital (301): H. Venedict, withdrawals (302) Fees Earned (402) Salaries Expense (601) and Utilities Expense (002) View transaction list

Answer 1

Answer -

1. Answer -

Increase in assets and expenses are debited and increase in liabilities, owner’s capital and revenue are credited. Conversely, decrease in assets and expenses are credited and decrease in liabilities, owner’s capital and revenue are debited.

Transaction	General Journal	Debit	Credit
a.	Cash	$82000
	Office equipment	$22000
	H. Venedict, capital		$104000
b.	Land	$45000
	Building	$150000
	Cash		$25000
	Notes payable		$170000
c.	Office supplies	$1600
	Accounts payable		$1600
d.	Automobiles	$16900
	H. Venedict, capital		$16900
e.	Office equipment	$5000
	Accounts payable		$5000
f.	Salaries expense	$1800
	Cash		$1800
g.	Cash	$7800
	Fees earned		$7800
h.	Utilities expense	$650
	Cash		$650
i.	Accounts payable	$1600
	Cash		$1600
j.	Office equipment	$20100
	Cash		$20100
k.	Accounts receivable	$6000
	Fees earned		$6000
l.	Salaries expense	$1900
	Cash		$1900
m.	Cash	$4000
	Accounts receivable		$4000
n.	H. Venedict, withdrawals	$2900
	Cash		$2900

  

Calculation:

Transaction (a):

H. Venedict, capital = Cash + Office equipment

= $82000 + $22000 = $104000

2. Answer -

Cash (101)
Transaction	Debit	Credit	Balance
a.	$82000		$82000
b.		$25000	$57000
f.		$1800	$55200
g.	$7800		$63000
h.		$650	$62350
i.		$1600	$60750
j.		$20100	$40650
l.		$1900	$38750
m.	$4000		$42750
n.		$2900	$39850

Calculation:

Balance = Debit - Credit

= [$82000 + $7800 + $4000] - [$25000 + $1800 + $650 + $1600 + $20100 + $1900 + $2900]

= $39850

Accounts receivable (106)
Transaction	Debit	Credit	Balance
k.	$6000		$6000
m.		$4000	$2000

Calculation:

Balance = Debit - Credit

= $6000 - $4000

= $2000

Office supplies (108)
Transaction	Debit	Credit	Balance
c.	$1600		$1600

Office equipment (163)
Transaction	Debit	Credit	Balance
a.	$22000		$22000
e.	$5000		$27000
j.	$20100		$47100

Calculation:

Balance = Debit - Credit

= [$22000 + $5000 + $20100] - $0

= $47100

Automobiles (164)
Transaction	Debit	Credit	Balance
d.	$16900		$16900

Building (170)
Transaction	Debit	Credit	Balance
b.	$150000		$150000

Land (172)
Transaction	Debit	Credit	Balance
b.	$45000		$45000

Accounts payable (201)
Transaction	Debit	Credit	Balance
c.		$1600	$1600
e.		$5000	$6600
i.	$1600		$5000

Calculation:

Balance = Credit - Debit

= [$1600 + $5000] - $1600

= $5000

Notes payable (250)
Transaction	Debit	Credit	Balance
b.		$170000	$170000

H. Venedict, capital (301)
Transaction	Debit	Credit	Balance
a.		$104000	$104000
d.		$16900	$120900

Calculation:

Balance = Credit - Debit

= [$104000 + $16900] - $0

= $120900

H. Venedict, withdrawals (302)
Transaction	Debit	Credit	Balance
n.	$2900		$2900

Fees earned (402)
Transaction	Debit	Credit	Balance
g.		$7800	$7800
k.		$6000	$13800

Calculation:

Balance = Credit - Debit

= [$7800 + $6000] - $0

= $13800

Salaries expense (601)
Transaction	Debit	Credit	Balance
f.	$1800		$1800
l.	$1900		$3700

Calculation:

Balance = Debit - Credit

= [$1800 + $1900] - $0

= $3700

Utilities expense (602)
Transaction	Debit	Credit	Balance
h.	$650		$650

3. Answer -

HV Consulting
Trial Balance
As of September 30
	Debit	Credit
Cash	$39850
Accounts receivable	$2000
Office supplies	$1600
Office equipment	$47100
Automobiles	$16900
Building	$150000
Land	$45000
Accounts payable		$5000
Notes payable		$170000
H. Venedict, capital		$120900
H. Venedict, withdrawals	$2900
Fees earned		$13800
Salaries expense	$3700
Utilities expense	$650
Total	$309700	$309700

Note: Referred ending balance of T-accounts or ledger accounts for cash, accounts receivable, office supplies, office equipment, automobiles, building, land, accounts payable, notes payable, capital account, withdrawals, fees earned, salaries expense and utilities expense.