Question

February 1, 2019. The company engaged in the De Villa Consulting started its operations on following transactions during its first month of operations: Adrian de Villa invested $500,000 cash into the business. Feb. 1 Feb. 8 Purchased land, building, and equipment for $230,000. $50,000, the value of the building was $150,000, and the value of the was $30,000. The company paid $100,000 cash and the balance. The value of the land was equipment the issued a note payable for Purchased office supplies for $600 on account. Feb. 11 Feb. 15 Paid the local newspaper $400 for a full-page advertisement. The ad appeared today. Feb. 20 Feb. 22 Feb. 24 Feb. 25 Feb. 26 Feb. 27 Feb. 28 Performed consulting services for $10,000 cash. Billed clients for consulting services rendered today $9,000 Paid salaries and wages to employees $5,000. Paid the full amount owed for office supplies purchased on Feb. 11. Paid utility bills $300. Collected 5000 from clients for services billed on Feb. 22. De Villa withdrew $150 cash to pay his personal telephone bill. nstructions: I. Journalize the above transactions. (Explanations are required) 2. Post the recorded transactions into the ledgers.(Posting references are required both in journals and ledgers) Prepare the trial balance as at February 28, 2019. 3. Chart of Accounts 11 Cash 12 Accounts Receivable 13 Supplies 16 Land 17 Building 18 Equipment 31 De Villa, Capital 32 De Villa, Withdrawal 41 Service Revenue 51 Salaries and Wages Expense 52 Advertising Expense 53 Utility Expense 21 Notes Payable 22 Accounts Payable

Answer 1

I am answering the problem through attached images.

General Journal Date February, 2019 Page 1 Credit Debit Account Name & explanations Cash PR 11$500,000 31 500,000 De Villa, Capital [Owner invested cash into business] Land Building Equipment 16$ 50,000 17S 150,000 18 30,000 8 Cash Notes Payable 100,000 130,000 21 [Purchased Land, Building & Equipment in exchange of Cash & Notes Payable] 11 Supplies 13 600 $ 600 Accounts Payable [Purchased Office supplies on account] 52 $ 400 15 Advertising Expense Cash 400 [Paid for today's Advertisment in Local Newspaper] 11$ 10,000 41 20 Cash Service Revenue 10,000 Performed Consulting Services for Cash] 12 $9,000 41 22 Accounts Receivable $ 9,000 Service Revenue [Billed clients for Consulting Services rendered today] Salaries and Wages Expense 24 51 $ 5,000 Cash $ 5,000 [Paid Salaries and Wages to employees] 22 $600 25 Accounts Payable Cash $600 Paid full amount for office supplies purchased on Feb 11] 26 Utility Expense 53$ 300 Cash $300 [Paid for Utility Bills] 11 4,500 12 27 Cash Accounts Receivable 4,500 [Collected 50% of the amount from Clients serviced on Feb 22] 28 De Villa, Withdrawal Cash 32 S 150 $150 Owner withrew Cash to pay his personal telephone bill]

ccount #11-Cash Particulars PR Debit GJ1 $500,000 Date Date Particulars PR Credit 1-Feb-19 De Villa, Capital 8-Feb-19 Land GJ1 $ 100,000 15-Feb-19 Advertising Expense 20-Feb-19 Service Revenue 24-Feb-19 Salaries and Wages Expense GJ1 $ 5,000 25-Feb-19 Accounts Payable 26-Feb-19 Utility Expense GJ1 600 27-Feb-19 Accounts Receivable GJ1 4,500 28-Feb-19| De Villa, Withdrawal 28-Feb-19 Balance c/f GJ1 $ 150 $ 408,050 $ 514,500 $ 514,500 Account #12-Accounts Receivables Particulars Date Particulars PR Debit Date PR Credit 22-Feb-19 Service Revenue 1 S 4,500 4,500 $ 9,000 27-Feb-19 Cash GJ1 28-Feb-19 Balance c/f $ 9,000 Account #13-Supplies Date Particulars PR Debit Date Particulars PR Credit 11-Jan-00 Accounts Payable GJ1 600 28-Feb-19 Balance c/f 600 600 600 ccount #16-Land Particulars PR Debit GJ1 50,000 Date Date Particulars PR Credit 8-Feb-19 Cash 28-Feb-19 Balance c/f $ 50,000 $ 50,000 $ 50,000 Account #17-Building Particulars PR Debit GJ1 $150,000 Date Date Particulars PR Credit 8-Feb-19 Cash $ 150,000 $ 150,000 28-Feb-19 Balance c/f $ 150,000

Account #18-Equipment Particulars PR Debit GJ1 $ 30,000 Date Date Particulars PR Credit 8-Feb-19 Cash $ 30,000 $ 30,000 28-Feb-19 Balance c/f $ 30,000 Account #21-Notes Payable Particulars PR Debit Particulars PR Credit GJ1 $ 130,000 Date Date 8-Feb-19 Land 28-Feb-19 Balance c/f $ 130,000 $ 130,000 $ 130,000 Account #22-Accounts Payable Date Particulars PR Debit Particulars PR Credit GJ1 $600 Date 11-Feb-19 Supplies 25-Feb-19 Cash GJ1 $600 28-Feb-19 Balance c/f $600 $600 Account #31-De Villa, capital Particulars PR Debit Particulars PR Credit GJ1 $ 500,000 Date Date 1-Feb-19|Cash 28-Feb-19 Balance c/f S 500,000 $ 500,000 $ 500,000 Account #32-De Villa, Withdrawal Date Particulars PR Debit GJ1 $ 150 Date Particulars PR Credit 28-Feb-19 Cash 28-Feb-19 Balance c/f $150 $150 $150 Account #41-Service Revenue Date Particulars PR Debit Particulars PR Credit Date 20-Feb-19 Cash 22-Feb-19 Accounts Receivable GJ1 $ 10,000 9,000 $ 19,000 $ 19,000 28-Feb-19 Balance c/f $ 19,000

Account #51-Salaries and Wages Expense Date Particulars PR Debit GJ1 $ 5,000 Date Particulars PR Credit 24-Feb-19 Cash 28-Feb-19 Balance c/f $ 5,000 $ 5,000 $ 5,000 Account #52. Advertising Expense Particulars Particulars PR Debit GJ1$4 Date Date PR Credit 15-Feb-19 Cash 400 28-Feb-19 Balance c/f 400 400 400 Account #53-Utility Expense Particulars PR Debit GJ1 $ 300 Date Date Particulars PR Credit 26-Feb-19 Cash $300 $300 28-Feb-19 Balance c/f $300

Trial Balance as at 28th February, 2019 Sr No Account Name Account # Debit Balance | Credit Balance 11 $ 408,050 Cash Accounts Receivable Supplies Land Building Equipment Notes Payable Accounts Payable De Villa, Capital De Villa, Withdrawal Service Revenue 4,500 600 4 5 6 7 8 9 10 13 16 $ 50,000 17 $ 150,000 18 $30,000 21 31 32 41 $130,000 $500,000 $19,000 150 12Salaries and Wages Expense 13 Advertising Expense 14 Utility Expense 52 S 53 S 5,000 400 300 Total $ 649,00o$ 649,000

I hope this helps. :)