E3-14 Here is the ledger for Keisler Co. T-accounts and prepare a trial balance

Question

E3-14 Here is the ledger for Keisler Co. T-accounts and prepare a trial balance Cash Common Stock (LO 5, 8), AP Oct. 1 7,000 25 2,000 Oct. 400 1,500 250 300 500 7,000 Oct. 4 12 15 30 980 10 10 8,000 20 25 2,000 Accounts Receivable Dividends 800 Oct. 20 920 Supplies 400 Oct. 31 700 Oct. 30 Oct. 6 20 Service Revenue Oct. 4 180 800 980 920 Oct. 6 20 144 chapter 3 The Information System Salaries and Wa Oct. 3 3,000 Oct. 31 Notes Payable Supplies Ex 180 Oct. 10 8,000 Oct. 31 Accounts Payable Rent Expense Oct. 12 ,500TOct.3 3,000 Oet. 15 250 Instructions (a) Reproduce the journal entries for only the transactions that occurred on October 1 10, and 20, and provide explanations for each. (b) Prepare a il balance at October 31, 2014. (Hint: Compute ending balances of T-accounts first.)

Explanation / Answer

a) Journal Entries Date Account titles & Explanations Debit Credit 1-Oct Cash 7,000 common stock 7,000 (being cash received on common stock issued) 10-Oct cash 980 Service revenue 980 (being cash received for service rendered) 10-Oct Cash 8,000 notes payable 8,000 (being cash received on notes payable) 20-Oct cash 700 Account receivable 700 (being cash received from customers on account) b) Trial balance Accounts Debit Credit Cash 15730 Common stock 9,000 Account receivable 1,020 Dividends 300 Supplies 220 Service revenue 2,700 Equipment 3,000 Salaries and wage expense 500 Notes payable 8,000 Supplies expense 180 Accounts payable 1,500 Rent expense 250 Total 21200 21200

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