Question

Q2 Gerett Co. started consulting business in March 1, 2009. The following information is available regarding the transactions of the company in March: March 1: Gerett transferred TL 10,000 to the company from his personal account. March 2: Purchased a computer for TL 1,500 and a software package for TL 500 from Microhard, all paid in cash. March 4: Purchased office supplies for TL 500 on credit. March 5: Hired a secretary who will receive TL 1,500 a month. March 15: Performed consulting services and received TL 5,000 in cash. March 21: Received TL 10,000 from a customer for services to be performed in the following month. March 28: Performed services and received a promise of payment from Customer X, TL 7,500. March 28: Paid for supplies purchased on March 4. March 29: Customer X paid TL 2,500 as a part of the payment he promised on March 28. Gerett paid the secretary TL 1,250 for the 25-day-work for March 5 through March 31. Required: Journalize the transactions. Post the entries to T-accounts. Prepare the Unadjusted Trial Balance

Answer 1

Gerett Co. Journal Enteries Date Particulars 1.3.2009 Cash a/c To Capital (Capital Invested) Dr. Debit in TL Credit in TL 10000 10000 Debit in TL Credit in TL 23750 5000 500 1500 500 Dr. Dr. 1500 500 Trial Balance For the period ending 31.3.2009 Particulars Cash Accounts Receivable Office Supplies Computer Software Package Accounts Payable Unearned Service Revenue Capital Consulting Service Revenue Salary Expense Totals 2.3.2009 Computer a/c Software Package a/c To Cash (Assets purchased) 2000 10000 10000 12500 500 4.3.2009 Office Supplies a/c Dr. To Accounts Payable (Supplies purchased on account) 500 1250 32500 32500 5.3.2009 No Journal Entry Dr. 5000 15.3.2009 Cash a/c To Consulting Service Revenue (Services provided for cash) 5000 10000 21.3.2009 Cash a/c Dr. To Unearned Service Revenue (Advance from client) 10000 7500 28.3.2009 Accounts Receivable a/c Dr. To Consulting Service Revenue (Service provided on account) 7500 500 28.3.2009 Accounts Payable a/c Dr. To Cash (Creditors paid) 500 2500 29.3.2009 Cash a/c Dr. To Accounts Receivable (Cash collected from debtors) 2500 Dr. 1250 31.3.2009 Salary Expense a/c To Cash (Salary paid) 1250

10000 Capital Consulting Service Revenue Unearned Service Revenue Accounts Receivable Bal Cash 10000 Computer 5000 Software Package 10000 Accounts Payable 2500 Salary Expense Bal 27500 Unearned Service Revenue Cash 10000 10000 10000 1500 500 500 1250 23750 27500 10000 Capital Cash 10000 10000 Bal 10000 Consulting Service Revenue Accounts Receivable 7500 Cash Bal 2500 5000 7500 7500 Consulting Service Revenue Cash 12500 Accounts Receivable 12500 Bal 5000 7500 12500 Accounts Payable Office Supplies 500 Bal 500 500 500 Cash Salary Expense 1250 Bal 1250 1250 1250 Computer Cash 1500 Bal 1500 1500 1500 Cash Software Package 500 Bal 500 Accounts Payable 500 Office Supplies Cash 500 500 500