MONROE COLLEGE In March, Abby\'s Employment Agency had the following transaction

Question

MONROE COLLEGE In March, Abby's Employment Agency had the following transactions: 20XX March 1 Abby Todd invested $5,000 in the new employment agency. 4 Bought equipment for cash $200. 5 Earned employment fee for $200, but payment from Blue Co. will not be received until June. 6 Paid wages expenses of $300. 7 Abby Todd paid her home utility bill from the company checkbook, $74. 9 Placed Rick Wool at VCR Corporation, receiving $1,200 cash. 15 Paid cash for supplies, $200. 28 Telephone bill received but not paid, $180. 29 Advertising bill received but not paid, $400. The Chart of Accounts includes: Cash 111, Accounts Receivable 112, Supplies 131, Equipment 141 Accounts Payable 211 A. Todd Capital 311, A. Todd Withdrawal 321, Employment Fees Earned 411, Wages Expense 511, Telephone Expense 521, Advertising Expense 531. Instructions: (Click on tabs below for different accounting records.) Your task is to: 1) Journalize. Record the transactions in the General Journal in date order. 2) Set up T-accounts in a ledger (already done).. 3) Record transactions amounts in the individual T-accounts ( Place the date of the transaction next to the entry. DR column entries, put date on left - CR column entries, put date on right). 3) Foot the T-accounts where appropriate and get the net balance for each account. 4) Prepare a Trial Balance and ensure that Total debits = Total credits. Note re: Excel spreadsheet: General Journal Input dates in date column as labels and input transaction amounts in DR/CR columns as numeric values General ledger T Accounts Input the dollar amounts as numeric values and input formulas to calculate column totals. Enter dates in the columns to the right and left of the entries in the T accounts. Trial Balance Input net balances from the T accounts in to Trial Balance as numeric values and use a formula to get the total DR's and total CR's

Explanation / Answer

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Date General Journal Debit Credit Mar. 1 Cash 5000 Todd capital 5000 (To record capital invested) Mar. 4 Equipment 200 Cash 200 (To record equipment purchased) Mar. 5 Accounts receivable 200 Employment fees earned 200 (To record employment fees earned on account) Jun. 6 Wages expense 300 Cash 300 (To record wages paid) Jun. 7 Todd withdrawal 74 Cash 74 (To record drawings) Jun. 9 Cash 1200 Employment fees earned 1200 (To record employment fees earned on account) Jun. 15 Supplies 200 Cash 200 (To record supplies purchased) Jun. 28 Telephone expense 180 Accounts payable 180 (To record telephone bill payable) Jun. 29 Advertising expense 400 Accounts payable 400 (To record advertising bill payable)

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