SERIES A PROBLEMS T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started a business i

Question

SERIES A PROBLEMS T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started a business in May Kohl has decided to use the following accounts for recording transactions: SHOW ME HOW Cash bal. after (pl: $21,805 (Dr.) 20- called Kohl's Home Repair Kohl hired a part-time college student as an assistant. Trial bal. total debits: $44,900 P 3-13A (LO2/4/5) Assets Owner's Equity Wilhelm Kohl, Capital Wilhelm Kohl, Drawing CLGL Cash Accounts Receivable Office Supplies Revenue Service Fees Prepaid Insurance Equipment Van SHOW ME HOW Expenses Rent Expense Wages Expense Phone Expense Liabilities Accounts Payable s and Oil Expense The following transactions occurred during May: (a) Invested cash in the business, $25,000. (b) Purchased a used van for cash, $6,000. (c) Purchased equipment on account, $4,000. (d) Received cash for services rendered, $7,500. (e) Paid cash on account owed from transaction (c), $2,300. (f) Paid rent for the month, $850. (g) Paid phone bill, $230. (h) Earned revenue on account, $4,500. (i) Purchased office supplies for cash, $160. Gi) Paid wages to an assistant, $800. k) Purchasedaone-year insurance r wo, s 1,100. (l) Received cash from services performed in transaction (h), $3,400. (m) Paid cash for gas and oil expense c van, $155. (n) Purchased additional equipment fo, 200, paying $1,500 cash and spreading the remaining payments over the a 10 months (o) Earned service fees for the renainder of the month of $3,500: $1,900 in cash and $1,600 on account. (p) Withdrew cash at the end of the month, $2,900.

Explanation / Answer

Journal:

T accounts:

TB

Ref Account Debit Credit a Cash        25,000 Wilhelm kohl, capital      25,000    b Van          6,000    Cash        6,000    c Equipment          4,000    Accounts payable        4,000    d Cash          7,500    Service fees        7,500    e Accounts payable          2,300    Cash        2,300    f Rent expense             850    Cash           850    g Phone expense             230    Cash           230    h Accounts receivable          4,500    Cash        4,500    i Office supplies             160    Cash           160    j Wages expense             800    Cash           800    k Prepaid insurance          1,100    Cash        1,100    l Cash          3,400    Accounts receivable        3,400    m Gas and oil expense             155    Cash           155    n Equipment        34,200    Cash      34,200    o-1 Cash          1,900    Service fees        1,900    o-2 Accounts receivable          1,600    Cash        1,600    p Wilhelm kohl, drawing          2,900    Cash        2,900

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