Question

Jones Company had the following transactions for their first month of operations, ending on December 31st, 2017.
12/1/17 Invested $25,000 cash and equipment valued at $25,000 into the business
12/2/17 Paid office rent of $500 for the month of December
12/3/17 Purchased office supplies on account for $4,500
12/15/17 Prepaid office rent $5,000 for Jan - Oct. 2017
12/16/17 Received $9,000 cash in advance for future sales
12/19/17 Had a cash sale of $20,000 for items sold
12/31/17 Paid secretary $2,000 for office wages related to December
12/31/17 A count showed $2,500 worth of supplies had been used

*Depreciation is recorded by using a 5 year life on equipment, straight line method with no salvage method.

** Chart of accounts for Jones Company is: Cash, Supplies, Prepaid Rent, Equipment, Accumulated Depreciation Equipment, Accounts Payable, Unearned Sales Revenue, Owners Capital, Sales Revenue, Rent Expense and Wage Expense

A. Prepare general journal entries for all transactions
B. Post to T accounts
C. Prepare a trial balance

Answer 1

A. In the books of Jones Company:

Date	General Journal	Debit	Credit
		$	$
12/1/17	Cash	25,000
	Equipment	25,000
	Owner's Capital		50,000
12/2/17	Rent Expense	500
	Cash		500
12/3/17	Supplies	4,500
	Accounts Payable		4,500
12/15/17	Prepaid Rent	5,000
	Cash		5,000
12/16/17	Cash	9,000
	Unearned Sales Revenue		9,000
12/19/17	Cash	20,000
	Sales Revenue		20,000
12/31/17	Wage Expense	2,000
	Cash		2,000
12/31/17	Supplies Expense	2,500
	Supplies		2,500
12/31/17	Depreciation Expense	417
	Accumulated Depreciation : Equipment		417

B.

Cash
12/1/17	25,000	12/2/17	500
12/16/17	9,000	12/15/17	5,000
12/19/17	20,000	12/31/17	2,000
Balance, 12/31/17	46,500

Supplies
12/3/17	4,500	12/31/17	2,500
Balance, 12/31/17	2,000

Prepaid Rent
12/15/17	5,000
Balance, 12/31/17	5,000

Equipment
12/1/17	25,000
Balance, 12/31/17	25,000

Accumulated Depreciation : Equipment
		12/31/17	417
		Balance, 12/31/17	417

Accounts Payable
		12/3/17	4,500
		Balance, 12/31/17	4,500

Unearned Sales Revenue
		12/16/17	9,000
		Balance, 12/31/17	9,000

Owner's Capital
		12/1/17	50,000
		Balance, 12/31/17	50,000

Sales Revenue
		12/19/17	20,000

Rent Expense
12/2/17	500

Wage Expense
12/31/17	2,000

Supplies Expense
12/31/17	2,500

Depreciation Expense
12/31/17	417

C.

Jones Company Adjusted Trial Balance December 31, 2017
Account Titles	Debit	Credit
	$	$
Cash	46,500
Supplies	2,000
Prepaid Rent	5,000
Equipment	25,000
Accumulated Depreciation : Equipment		417
Accounts Payable		4,500
Unearned Sales Revenue		9,000
Owner's Capital		50,000
Sales Revenue		20,000
Rent Expense	500
Wage Expense	2,000
Supplies Expense	2,500
Depreciation Expense	417
Totals	$ 83,917	$ 83,917