The Complete Accounting Cycle Without a Work Sheet: Two Months (second month opt

Question

The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)

During July, Bob Lutz completed these transactions for Lutz Repair Service:

8. Provide a posting reference once the amounts are posted to the appropriate ledgers in next section of this problem.

GENERAL JOURNAL

4

    

2014 Jul. 1

  

   

  

                  

    

      

  

   

  

                  

    

      

To pay one month's rent

   

   

    

      

   

   

   

    

2014 Jul. 1

  

   

  

                  

    

      

  

   

  

                  

    

      

To make monthly payment to Bilbao Company

   

   

    

      

   

   

   

    

Jul. 6

  

   

  

                  

    

      

  

   

  

                  

    

      

To purchase repair supplies on credit from Rusin Company

   

   

    

      

   

   

   

    

Jul. 15

  

   

  

                  

    

      

  

   

  

                  

    

      

To record receipt of revenue for the first half of the month

   

   

    

      

   

   

   

    

Jul. 20

  

   

  

                  

    

      

  

   

  

                  

    

      

To purchase additional advertisement

   

   

    

      

   

   

   

    

Jul. 23

  

   

  

                  

    

      

  

   

  

                  

    

      

To make payment on account to Rusin Company

   

   

    

      

   

   

   

    

Jul. 31

  

   

  

                  

    

      

  

   

  

                  

    

      

To record receipt of revenue for the last half of the month

   

   

    

      

   

   

   

    

Jul. 31

  

   

  

                  

    

      

  

   

  

                  

    

      

To record owner withdrawal

   

   

    

      

   

   

   

Post the information to the following ledger accounts. If no entry is required, leave the box blank. When more than one entry occurs on a date, enter in the order given in the General Journal above.

July 1 Paid the monthly rent, $1,700. 1 Made the monthly payment to Bilbao Company, $1,200. 6 Purchased additional repair supplies on credit from Rusin Company, $3,452. 15 Received cash repair revenue for the first half of the month, $3,656. 20 Paid cash for an advertisement in the local newspaper, $240. 23 Paid Rusin Company on account, $2,400. 31 Received cash repair revenue for the last half of the month, $3,268. 31 Recorded a withdrawal by owner, $1,200.

Explanation / Answer

Journal entries:

T- Accounts

Cash

Repairs supplies

Accounts payable

july 23                                           $2400                                                 $15,224

L-Stoker , withdrawals

Repair revenue

Store rent expense

Advertising expense

Date Description Debit Credit July 1 Stroe rent expense $1,700 To Cash $1,700 July 1 Accounts payable $1,200 To Cash $1,200 July 6 Repair supplies $3452 To Accounts payable $3,452 July 15 Cash $3,656 To Repair revenue $3,656 July 20 Advertising expense $240 To Cash $240 July 23 Accounts payable $2,400 To Cash $2,400 July 31 Cash $3268 To Repair revenue $3268 July 31 L Stoker withdrawals $1200 To Cash $1200

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