Find, genral journal, trial balance The following transactions relate to a compa

Question

Find, genral journal, trial balance The following transactions relate to a company's activities. June 1 1 Received $20,000 from the bank as debt capital. Received $20,000 in cash from the owner as an investment in the business. Sold $5400 of product on account (customer will pay later) 9 Bought a parcel of land by paying $12,000 cash. 14 Received $1700 in cash from the customer who was billed on June 3. 15 Paid $800 cash for paint supplies. 19 Bought equipment for $9000. Paid $5000 cash with the rest due in 3 weeks. 21 Received $1300 cash for products sold. 23 Paid $2500 for the equipment purchased on June 19. 27 Rented a car. Paid $275 which was put on the company's credit card. 28 Paid $150 in interest to the bank for the loan. 30 Paid $1900 for June wages. 30 Paid the owner a $1600 cash withdrawal. Post these transactions to the general journal. Post from the journal to the individual ledger accounts. Prepare the trial balance. Prepare the four financial statements. Close the appropriate accounts at the end of June.

Explanation / Answer

Date General Journal Debit Credit Jun-01 Cash 20000 Owner's capital 20000 (To record capital invested in business) Jun-01 Cash 20000 Loan/Note payable 20000 (To record borrowings from bank) Jun-03 Accounts receivable 5400 Sales revenue 5400 (To record sales on account) Jun-09 Land 12000 Cash 12000 (To record purchase of land) Jun-14 Cash 1700 Accounts receivable 1700 (To record collection on account) Jun-15 Supplies 800 Cash 800 (To record purchase of supplies) Jun-19 Equipment 9000 Cash 5000 Accounts payable 4000 (To record purchase of equipment) Jun-21 Cash 1300 Sales revenue 1300 (To record cash sales) Jun-23 Accounts payable 2500 Cash 2500 (To record payment on account) Jun-27 Car rental expense 275 Cash 275 (To record car renting expense) Jun-28 Interest expense 150 Cash 150 (To record interest paid) Jun-30 Wages expense 1900 Cash 1900 (To record payment of wages) Jun-30 Owner's drawings 1600 Cash 1600 (To record owner's withdrawals) Trial Balance June 30 Account Debit Credit Cash 18775 Accounts receivable 3700 Supplies 800 Land 12000 Equipment 9000 Accounts payable 1500 Loan/Note payable 20000 Owner's capital 20000 Owner's drawings 1600 Sales revenue 6700 Wages expense 1900 Car rental expense 275 Interest expense 150 Totals $ 48200 48200

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