ACC 225 Week 2 Assignment Preparing Journal Entries and Trial

Balances
Exercise 2-4
Prepare general journal entries for the following transactions of a new
business called Pose for Pics.
Aug. 1 Hashim Paris, the owner, invested $7,500 cash and $32,500 of
photography equipment in the business.
1 Paid $3,000 cash for an insurance policy covering the next 24 months.
5 Purchased office supplies for $1,400 cash. 20 Received $2,650 cash in
photography fees earned. 31 Paid $875 cash for August utilities.

ANSWER
Aug.1 Cash................................................................... 7,500
Photography Equipment.................................. 32,500
H. Paris, Capital..........................................

40,000

Owner investment in business.

1 Prepaid Insurance............................................
Cash.............................................................

3,000
3,000

Acquired 2 years of insurance coverage.

5 Office Supplies.................................................
Cash.............................................................

1,400
1,400

Purchased office supplies.

20 Cash...................................................................
Photography Fees Earned.........................

2,650
2,650

Collected photography fees.

31 Utilities Expense...............................................
Cash.............................................................
Paid for August utilities.

875
875

Exercise 2-5
Use the information in Exercise 2-4 to prepare an August 31 trial balance for
Pose-for-Pics. Open these T-accounts: Cash; Office Supplies; Prepaid
Insurance; Photography Equipment; H. Paris, Capital; Photography Fees
Earned; and Utilities Expense. Post the general journal entries to these Taccounts (which will serve as the ledger), and prepare a trial balance.
ANSWER

Aug. 1
20
Balance

Cash
7,500
Aug. 1
2,650
5
31
4,875

Aug. 5

Office Supplies
1,400

Aug. 1

Prepaid Insurance
3,000

3,000
1,400
875

Photography Equipment
Aug. 1
32,500
H. Paris, Capital
Aug. 1

40,000

Photography Fees Earned

Aug. 20
2,650
Aug. 31

Utilities Expense
875

POSE FOR PICS

Trial Balance
August 31
Cash.............................................

Debit
$ 4,875

Office supplies...........................

1,400

Prepaid insurance......................

3,000

Photography equipment............

32,500

Credit

H. Paris, Capital..........................

$40,000

Photography fees earned..........

2,650

Utilities expense.........................

875

______

Totals...........................................

$42,650

$42,650

Problem 2-2A
Part 1

a.

Cash............................................................101 105,000
Office Equipment.......................................163
6,000
Drafting Equipment....................................164 45,000
S. Shelton, Capital..............................301

156,000

Owner invested cash and equipment.

b.

Land............................................................172
Cash....................................................101
Note Payable.......................................250

54,000
5,400
48,600

Purchased land with cash and note

payable.

c.

Building.......................................................170
Cash........................................................101

75,000
75,000

Purchased building.

d.

Prepaid Insurance......................................108
Cash....................................................101

6,000
6,000

Purchased 18-month insurance policy.

e.

Cash............................................................101
Engineering Fees Earned..................402

5,700
5,700

Collected cash for completed work.

f.

Drafting Equipment....................................164
Cash....................................................101
Note Payable........................................250

22,500
10,500
12,000

Purchased equipment with cash and note

payable.

g.

Accounts Receivable.................................106
Engineering Fees Earned..................402

12,000
12,000

Completed services for client.

h.

Office Equipment.......................................163
Accounts Payable..............................201

2,250
2,250

Purchased equipment on credit.

i.

Accounts Receivable.................................106
Engineering Fees Earned..................402
Billed client for completed work.

18,000
18,000

Part 1 Continued

j.

Equipment Rental Expense.......................602

Accounts Payable..............................201

1,200
1,200

Incurred equipment rental expense.

k.

Cash............................................................101
Accounts Receivable.........................106

7,200
7,200

Collected cash on account.

l.

Wages Expense..........................................601
Cash....................................................101

1,500
1,500

Paid assistants wages.

m.

Accounts Payable......................................201
Cash...................................................101

2,250

2,250

Paid amount due on account.

n.

Repairs Expense........................................604
Cash...................................................101

675

675

Paid for repair of equipment.

o.

S. Shelton, Withdrawals............................302
Cash....................................................101

9,360
9,360

Cash withdrawn for personal use.

p.

Wages Expense..........................................601
Cash....................................................101

1,500
1,500

Paid assistants wages.

q.

Advertising Expense..................................603
Cash....................................................101
Paid for advertising expense.

3,000
3,000

Part 2
Cash
Date PR
(a)
(b)
(c)
(d)
(e)
(f)
(k)
(l)
(m)
(n)
(o)
(p)
(q)

No. 101
Debit
105,000

Credit
5,400
75,000
6,000

5,700
10,500
7,200
1,500
2,250
675
9,360
1,500
3,000

Accounts Receivable
Date PR
(g)
(i)
(k)

Debit
12,000
18,000

No. 106
Credit
7,200

Prepaid Insurance
Date PR
(d)

Debit
6,000

Debit
6,000
2,250

Credit

Debit
45,000
22,500

Credit

Credit

Balance
45,000
67,500
No. 170

Debit
75,000

Credit

Land
Date PR
(b)

Balance
6,000
8,250
No. 164

Building
Date PR
(c)

Balance
6,000
No. 163

Drafting Equipment
Date PR
(a)
(f)

Balance
12,000
30,000
22,800
No. 108

Office Equipment
Date PR
(a)
(h)

Balance
105,000
99,600
24,600
18,600
24,300
13,800
21,000
19,500
17,250
16,575
7,215
5,715
2,715

Balance
75,000
No. 172

Debit
54,000

Credit

Balance
54,000

Accounts Payable
Date PR
(h)
(j)
(m)

Debit
2,250

No. 201
Credit
Balance
2,250
2,250
1,200
3,450
1,200

Notes Payable
Date PR
(b)
(f)

No. 250

Debit

Credit
Balance
48,600
48,600
12,000
60,600

S. Shelton, Capital

No. 301

Date PR
(a)

Debit

Credit
Balance
156,000
156,000

S. Shelton, Withdrawals
Date PR
(o)

Debit
9,360

No. 302
Credit

Engineering Fees Earned

Date PR
(e)

Debit

(g)
(i)

No. 402

Credit
5,700

Balance
5,700

12,000
18,000

17,700
35,700

Wages Expense
Date PR
(l)
(p)

Debit
1,500
1,500

No. 601
Credit

Equipment Rental Expense

Date PR
(j)

Debit
1,200

Credit

Advertising Expense
Date PR
(q)

Debit
3,000

Debit
675

Balance
1,500
3,000
No. 602
Balance
1,200
No. 603

Credit

Repairs Expense
Date PR
(n)

Balance
9,360

Balance
3,000
No. 604

Credit

Balance
675

Part 3

SHELTON ENGINEERING
Trial Balance
June 30
Debit
Cash............................................................. $ 2,715
Accounts receivable.................................. 22,800
Prepaid insurance......................................
6,000
Office equipment........................................
8,250
Drafting equipment.................................... 67,500
Building....................................................... 75,000
Land............................................................. 54,000
Accounts payable.......................................
Notes payable.............................................
S. Shelton, Capital......................................
S. Shelton, Withdrawals.............................
9,360
Engineering fees earned............................
Wages expense..........................................
3,000
Equipment rental expense.........................
1,200
Advertising expense..................................
3,000
Repairs expense.........................................
675
Totals........................................................... $253,500

Credit

1,200
60,600
156,000
35,700

$253,500