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Basic journal entries
The following transactions pertain to the Jennifer Royall Company: May 1 Jenni¬fer Royall invested cash of $25,000 and land valued at $15,000 into the business.
Cash…. $25.000 and Land $15,000= Owner’s equality $ 40,000
5 Provided $1,000 of services to Jason Ratchford, a client, on account. Account receivable $1,000 Revenue $1,000
9 Paid $1,250 of salaries to an employee. Salary Expensive $1,250 Cash $1,250
14 Acquired a new computer for $4,200, on account. Computer $4,200 Accounts payable $4,200 Purchased computer on account
20 Collected $800 from Jason Ratchford for services provided on May 5. Cash $800 Account receivable $800 Received $1,000 by Jason Ratchford
24 Borrowed $2,500 from BestBanc by securing a six-month loan. Cash $2,500 Notes payable $2,500 Borrowed $2,500 from BestBanc,6 months
Prepare journal entries (and explanations) to record the preceding transactions and events.
3. Balance sheet preparation.
The following data relate to Preston Company as of December 31, 20XX:
Building $40,000 Accounts receivable $24,000
Cash 21,000 Loan payable 30,000
J. Preston, Capital 65,000 Land 21,000 Accounts payable ? Prepare a balance sheet as of December 31, 20XX. (See Exhibit 1.1 and 1.4) Current assets Current liabilities Cash $21,000 Account Payable $ 11.000 Accounts receivable $24,000 Total Current liabilities $11,000 Total Current Assets $ 45,000 Long Term Liabilities Long Term Assets Loan Payable $ 30.000 Building $40,000 Total long term liabilities $ 30,000 Land $ 21,000 Total liabilities $ 45,000 Total Long Term Assets $ 61,000 Capital Total Assets $ 106,000 J, Preston Capital $ 65,000 Total liabilities and Capital $ 110,000 4. Basic transaction processing. On November 1 of the current year, Richard Simmons established a sole proprietorship. The following transactions occurred during the month: 1: Simmons invested $32,000 into the business for $32,000 in common stock. 2: Paid $5,000 to acquire a used minivan. 3: Purchased $1,800 of office furniture on account. 4: Performed $2,100 of consulting services on account. 5: Paid $300 of repair expenses. 6: Received $800 from clients who were previously billed in item 4. 7: Paid $500 on account to the supplier of office furniture in item 3. 8: Received a $150 electric bill, to be paid next month. 9: Simmons withdrew $800 from the business. 10: Received $250 in cash from clients for consulting services rendered. Instructions Assets 1, $ 32,000 cash Common stock $32,000 2, $5,000 Minivan $5,000 3. $1,800 furniture = Account payable $1,800 4, $2,100 account receive = expenses $2,100 5, $500 paid in cash = Expenses $ 500 6, $800 received from clients cash = Account received $800 7, $500 supply in cash = Account payable $500 8, $150 account payable = Expenses $150 9, $800 cash = Account payable $800 10, $250 cash = expensive $250 $26,150, $2,900, $1,800, $5,000, $1,450, $31,400, $1,900 Liabilities appear $1,450 on the balance sheet and revenue, expenses exceed by $1,900 and cash is $26,150 which means is positive good month. 5. Transaction analysis and statement preparation. The transactions that follow relate to Burton Enterprises for March 20X1, the company’s first month of activity. Answer 3/1 cash $20,000 Common stock $20,000 3/4 account receive $2,400 Expenses $2400 3/7 cash -6000 land 6000 3/12 cash 500 account receive -500 3/15 cash -200 expensive -200 3/18 equipment 9000 payable 7000 3/22 cash 300 expensive 300 3/24 cash -1500 payable -1500 3/28 payable 125 3/31 cash -600 expensive -600 3/31 cash -600 common stock -600 Cash 11,900, account received 1900, land 6000, equipment 9000, account payable 5625, Common stock 19400, expensives1900 Burton Enterprises Income Statement For the period ending March 20X1 Revenue $1900 Expenses Advertising Expensive $200 Auto expense $ 125 Wage Expensive $ $5625 Total income $1900 Burton Enterprises Statement id Retained Earnings …show more content…
Journal entry preparation. On January 1 of the current year, Peter Houston invested $80,000 cash into his company MuniServ. The cash was obtained from an owner investment by Peter Houston of $50,000 and a $30,000 bank loan. Shortly thereafter, the company ac¬quired selected assets of a bankrupt competitor. The acquisition included land ($10,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $15,000 (an account payable) by February
The following transactions pertain to the Jennifer Royall Company: May 1 Jenni¬fer Royall invested cash of $25,000 and land valued at $15,000 into the business.
Cash…. $25.000 and Land $15,000= Owner’s equality $ 40,000
5 Provided $1,000 of services to Jason Ratchford, a client, on account. Account receivable $1,000 Revenue $1,000
9 Paid $1,250 of salaries to an employee. Salary Expensive $1,250 Cash $1,250
14 Acquired a new computer for $4,200, on account. Computer $4,200 Accounts payable $4,200 Purchased computer on account
20 Collected $800 from Jason Ratchford for services provided on May 5. Cash $800 Account receivable $800 Received $1,000 by Jason Ratchford
24 Borrowed $2,500 from BestBanc by securing a six-month loan. Cash $2,500 Notes payable $2,500 Borrowed $2,500 from BestBanc,6 months
Prepare journal entries (and explanations) to record the preceding transactions and events.
3. Balance sheet preparation.
The following data relate to Preston Company as of December 31, 20XX:
Building $40,000 Accounts receivable $24,000
Cash 21,000 Loan payable 30,000
J. Preston, Capital 65,000 Land 21,000 Accounts payable ? Prepare a balance sheet as of December 31, 20XX. (See Exhibit 1.1 and 1.4) Current assets Current liabilities Cash $21,000 Account Payable $ 11.000 Accounts receivable $24,000 Total Current liabilities $11,000 Total Current Assets $ 45,000 Long Term Liabilities Long Term Assets Loan Payable $ 30.000 Building $40,000 Total long term liabilities $ 30,000 Land $ 21,000 Total liabilities $ 45,000 Total Long Term Assets $ 61,000 Capital Total Assets $ 106,000 J, Preston Capital $ 65,000 Total liabilities and Capital $ 110,000 4. Basic transaction processing. On November 1 of the current year, Richard Simmons established a sole proprietorship. The following transactions occurred during the month: 1: Simmons invested $32,000 into the business for $32,000 in common stock. 2: Paid $5,000 to acquire a used minivan. 3: Purchased $1,800 of office furniture on account. 4: Performed $2,100 of consulting services on account. 5: Paid $300 of repair expenses. 6: Received $800 from clients who were previously billed in item 4. 7: Paid $500 on account to the supplier of office furniture in item 3. 8: Received a $150 electric bill, to be paid next month. 9: Simmons withdrew $800 from the business. 10: Received $250 in cash from clients for consulting services rendered. Instructions Assets 1, $ 32,000 cash Common stock $32,000 2, $5,000 Minivan $5,000 3. $1,800 furniture = Account payable $1,800 4, $2,100 account receive = expenses $2,100 5, $500 paid in cash = Expenses $ 500 6, $800 received from clients cash = Account received $800 7, $500 supply in cash = Account payable $500 8, $150 account payable = Expenses $150 9, $800 cash = Account payable $800 10, $250 cash = expensive $250 $26,150, $2,900, $1,800, $5,000, $1,450, $31,400, $1,900 Liabilities appear $1,450 on the balance sheet and revenue, expenses exceed by $1,900 and cash is $26,150 which means is positive good month. 5. Transaction analysis and statement preparation. The transactions that follow relate to Burton Enterprises for March 20X1, the company’s first month of activity. Answer 3/1 cash $20,000 Common stock $20,000 3/4 account receive $2,400 Expenses $2400 3/7 cash -6000 land 6000 3/12 cash 500 account receive -500 3/15 cash -200 expensive -200 3/18 equipment 9000 payable 7000 3/22 cash 300 expensive 300 3/24 cash -1500 payable -1500 3/28 payable 125 3/31 cash -600 expensive -600 3/31 cash -600 common stock -600 Cash 11,900, account received 1900, land 6000, equipment 9000, account payable 5625, Common stock 19400, expensives1900 Burton Enterprises Income Statement For the period ending March 20X1 Revenue $1900 Expenses Advertising Expensive $200 Auto expense $ 125 Wage Expensive $ $5625 Total income $1900 Burton Enterprises Statement id Retained Earnings …show more content…
Journal entry preparation. On January 1 of the current year, Peter Houston invested $80,000 cash into his company MuniServ. The cash was obtained from an owner investment by Peter Houston of $50,000 and a $30,000 bank loan. Shortly thereafter, the company ac¬quired selected assets of a bankrupt competitor. The acquisition included land ($10,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $15,000 (an account payable) by February