NAME Principles of Accounting Quiz 2 Chapter 2 10 Points Transactions for Giles
ID: 2410594 • Letter: N
Question
NAME Principles of Accounting Quiz 2 Chapter 2 10 Points Transactions for Giles Company for the month of May are presented below. On the form provided on the following page, journalize these transactions in general journal form Identify each transaction by number. Omit explanations. A partial chart of accounts is provided Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Notes Payable Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Insurance Expense Advertising Expense Wages Expense Rent Expense After you have journalized the transactions, post those entries which affect cash into the T account form provided and calculate the ending balance in the cash account. 1. The Company issues stock in exchange for $100,000. 2. Purchased equipment costing $18,000 for $3,000 cash and the remainder on credit. 3. Paid $500 for current month's rent 4. Purchased supplies on credit for $500. 5. Paid $1200 for a one-year insurance policy. 6. Reoeived a bill for $300 for advertising for the current month. Payment will be made in two weeks. 7. Billed customer $5,000 for servioes performed on account 8. Hireda a new employee who will begin work next week at a rate of $1,250 per week. 9. Collected $1,000 from customers billed in transaction 7 10. The Company paid dividends of $800 to stockholders. 11. Received $750 in advance for services to be performed next month. 12. Made a partial payment of $100 for supplies purchased in 4.Explanation / Answer
Ending balance in cash account = $96,150.
Giles Company General journal for the month of may Event Account Title Debit Credit 1 Cash 100000 Common stock 100000 (Issue of common stock for cash) 2 Equipment 18000 Cash 3000 Accounts Payable 15000 (Purchase of equipment) 3 Rent Expense 500 Cash 500 (Cash paid for current month's rent) 4 Supplies 500 Accounts Payable 500 (Purchase of supplies on credit) 5 Prepaid Insurance 1200 Cash 1200 (Payment for one-year insurance) 6 Advertising Expense 300 Accounts Payable 300 (Advertising bill received) 7 Accounts Receivable 5000 Service Revenue 5000 (Billed customers for services performed) 8 No entry required 9 Cash 1000 Accounts Receivable 1000 (Collections made from customers on account) 10 Dividends 800 Cash 800 (Cash dividends paid) 11 Cash 750 Unearned Service Revenue 750 (Cash received for services to be performed next month) 12 Accounts Payable 100 Cash 100 (Cash paid to suppliers on account)Related Questions
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