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Record the following transactions in the journal and post them to the ledger. Pr

ID: 2433410 • Letter: R

Question

Record the following transactions in the journal and post them to the ledger. Prepare a trial balance, and income statement, and owner equity statement and a balance sheet. Tessa's trucking began business on July 1 and had the following transactions. Tessa's trucking is a sole proprietorship (7-1)tessa taylor contributed $300,000 cash to tessa trucking "tt". The contribuation was made in cash. (7-2) tt punchased a trucking for $100,000cash (7-3)tt purchased supplies from home depot on account for $10,000 (7-5) tt moved aaron judges to new York and billed him $200,000 (7-7) tt paid the home depot account payable from (7-3)S10,000 in cash (7-8) aaron judse paid his account receivable from(7-5) $200,000) in cash (7-31) paid salary in cash$10,000 (7-31)paid rent in cash$20,000

Explanation / Answer

Tessa's Trucking Journal Entries For the month of July, 20XX Date Account Debit Amount $ Credit Amount $ 20Xx Jul-01 Cash A/c     3,00,000      Capital Account     3,00,000 (Being the entry to record the capital contribution made by Tessa to the business) Jul-02 Fixed Asset - Asset ( Truck)     1,00,000           Cash 1,00,000 (Being the entry to record the purchase of truck for cash.) Jul-03 Supplies A/c 10,000              Home Depot (A/c Payable) 10,000 (Being the purchase of supplies from Home Depot on account) Jul-05 Aaron Judges ( Account Receivable)     2,00,000               Service Revenue 2,00,000 (Being the entry to record transportation of goods belonging to Aaron Judges to New York on account). Jul-07 Home Depot (A/c Payable)         10,000               Cash 10,000 (Being the entry to record payment of dues to Home Depot for supplies purchased on July 3) Jul-08 Cash     2,00,000             Aaron Judges ( A/c Rec) 2,00,000 (Being the entry to record the receipt of money frm Aaron Judges for service rendered on July 5) Jul-31 Salaries         10,000            Cash 10,000 (Being the Payment of salaries by cash) Jul-31 Rent         20,000           Cash 20,000 (Being the payment of rent by cash) Ledger Accounts Service Revenue Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-31 To Balance     2,00,000 Jul-05 Aaron Judges ( A/c Receivable)       2,00,000 Total     2,00,000 Total       2,00,000     Supplies Expense Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-03 To Home Depot ( A/c Payable)         10,000 Jul-31 By Balance           10,000 Total        10,000 Total          10,000 Salaries Expense Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-31 To Cash         10,000 Jul-31 By Balance           10,000 Total        10,000 Total          10,000 Rent A/c Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-31 Cash         20,000 Jul-31 By Balance           20,000 Total        20,000 Total          20,000 Aaron Judges A/c ( Accounts Receivable) Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-05 Service Revenue     2,00,000 Jul-08 By Cash A/c       2,00,000 Total     2,00,000 Total       2,00,000     Home Depot A/c (Accounts Payable) Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-07 To Cash         10,000 Jul-03 By Supplies A/c           10,000 Total        10,000 Total          10,000     Capital Account Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-31 To Balance c/d     3,00,000 Jul-01 Cash       3,00,000 Total     3,00,000 Total       3,00,000     Aug-01 By Balance b/d       3,00,000 Cash A/c Date Particulars Dr Amount $ Date Particulars Cr Amount $ 20XX To 20XX By Jul-02 By Fixed Asset A/c (Truck)       1,00,000 Jul-01 Capital A/c     3,00,000 Jul-07 By Home Depot ( A/c Payable)           10,000 Jul-08 Aaron Judges ( A/c Receivable)     2,00,000 Jul-31 By Salaries           10,000 Jul-31 By Rent           20,000 Jul-31 By Balance c/d       3,60,000 Total     5,00,000 Total       5,00,000 Aug-01 To Balance b/d     3,60,000 Fixed Asset - Truck A/c Date Particulars Dr Amount $ Date Particulars Cr Amount $ 0 To 20XX By Jul-02 Cash A/c     1,00,000 Jul-31 By Balance c/d       1,00,000 Total     1,00,000 Total       1,00,000 Aug-01 To Balance b/d     1,00,000 Tessa's Trcukimg Trial Balance For the month July 1, 20XX to July 31, 20XX Account Debit Credit Amount $ Amount $ Cash 3,60,000 Aaron Judges (A/c Receivable ) -   Supplies 10,000 Rent 20,000 Salaries 10,000 Fixed Asset - Truck A/c 1,00,000 Home Depot A/c -Accounts Payable -   Capital A/c 3,00,000 Service Revenue 2,00,000 TOTAL 5,00,000 5,00,000 Tessa's Trucking Income Statement For the year ended July 31, 20XX Account Amount $ Amount $ A Revenues: Service Revenue 2,00,000 B Expenses: Supplies 10,000 Salaries 10,000 Rent 20,000     B Total Expenses 40,000 C Net Profit - Transferred to Retained Surplus 1,60,000 Tessa'sTrcuking Statement of Retained Earnings (Profit & Loss Account) For the year ended July 31, 20XX Account Amount $ Opening Balance of Retained Earnings ( Profit & Loss A/c)                 -   Add i Profit for the year - Transferred from Income Statement     1,60,000     Closing Balance of Retained Earnings(Profit & Loss A/c)     1,60,000 Tessa's Trcuking Balance Sheet As at July 31, 20XX Account Amount $ Amount $ Amount $ ASSETS     1 Current Assets: i Cash          3,60,000 ii Accounts Receivable                      - 1 Total Current Assets     3,60,000 2 Non-Current Assets: i Trucks at Cost          1,00,000 2 Total Non-Current Assets     1,00,000 TOTAL ASSETS     4,60,000 LIABILITIES AND OWNERS EQUITY 1 Current Liabilities: i Accounts Payable                  -   1 Total Current Liabilities                 -   2 Owner's Equity i. Capital Account      3,00,000 ii Retained Earnings( Profit & Loss A/c)      1,60,000 Total Owners Equity     4,60,000 TOTAL LIABILITIES AND OWNERS EQUITY         4,60,000

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