Journalize these transactions in the general journal and then post them to the g
ID: 2428221 • Letter: J
Question
Journalize these transactions in the general journal and then post them to the general ledger.
Assets
111 Cash
125 Accounts Receivable
150 Prepaid Insurance
175 Truck
179 Accumulated Depreciation, Truck
Liabilities
211 Accounts Payable
221 Salaries Payable
Owner's Equity
T. Boss, Capital
T. Boss, Drawing
Revenues
411 Landscape Services
Expenses
511 Salaries Expense
512 Supplies Expense
513 Gasoline Expense
514 Truck Repair Expense
515 Insurance Expense
516 Depreciation Expense, Truck
Transactions during the first half of April 2011 were as follow:
April 1 Paid to renew the annual liability insurance policy for $2400, ck. no. 1105
April 4 Took the truck into Joe's Garage and charged $510 for a tune-up to get ready for "busy" season, invoice no. 627789
April 5 Provided landscape services to Tom Tucker on account for $2750, invoice No. 348
April 6 T. Boss wrote a check to himself for 1500, ck. no. 1106
April 7 Paid $800 for a bill from Organic Home Supply that was recorded in March, ck. no. 1107
April 7 Filled gas tank of the company truck at Joe's Garage on account, $125
April 8 Bought fertilizer and grass seed on account at Organic Home Supply for $245
April 9 Received $3000 on account from Mary Hawkins for services provided in March.
April 12 Received $575 cash for landscape services provided to cash customers.
April 15 Paid landscape assistant $800 for wages through April 15, ck. no. 1108
Explanation / Answer
I assumed that this is using accrual process:
General Jornal:
Date Account and explanation Debit Credit
04/01 Prepaid insurance 2400
Account Payable 2400
Renew liability insurance
04/04 Account Receivable 510
Revenue 510
Perform service at Joe’s Garage
04/05 Account receivable 2750
Unearned revenue 2750
Perform service to Tom Tucker on account
04/06 Dividend 1500
Account Payable 1500
Pay dividend for T. Boss
04/07 Supply Expense 800
Account Payable 800
Pay for supply in March Gasoline Expense 125
Account payable 125
Filled gas tank in Joe’s Garage
04/08 Supply Expense 245
Account Payable 245
Purchasing supply
04/09 Account Receivable 3000
Revenue 3000
Performing service on March
04/12 Cash 575
Revenue 575
Performing service to cash customers
04/15 Salary Payable 800
Account Payable 800
Paying salary
General Ledger:
Account Payable
Date Debit Credit
04/01 2400
04/06 1500
04/07 800
125
04/08 245
04/15 800
Total 5870
Just do the same for the rest such as: account receivable, unearned revenue, and supply, etc.
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