1.
Set up general ledger accounts by entering the balances as of November 1.
1.
Explanation of Solution
General ledger:
General ledger is a record of all accounts of assets, liabilities, and
(Figure 1)
(Figure 2)
(Figure 3)
(Figure 4)
(Figure 5)
(Figure 6)
(Figure 7)
(Figure 8)
(Figure 9)
(Figure 10)
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(Figure 12)
(Figure 13)
(Figure 14)
2.
Prepare
2.
Explanation of Solution
Prepare journal entry to record the given transactions.
Date | Accounts title and explanation |
Post. Ref. |
Debit ($) |
Credit ($) |
November 1 | Rent Expense | 521 | 300 | |
Cash | 101 | 300 | ||
(To record the payment on November ) | ||||
November 2 | Tailoring supplies | 141 | 150 | |
Accounts payable | 202 | 150 | ||
(To record the purchase of tailoring supplies on account) | ||||
November 3 | Tailoring Equipment | 183 | 300 | |
Accounts payable | 202 | 300 | ||
(To record the purchase machine on account) | ||||
November 5 | Cash | 101 | 100 | |
Accounts Receivable | 122 | 300 | ||
Tailoring fees | 401 | 400 | ||
(To record the amount earned on tailoring fees) | ||||
November 8 | Advertising expense | 512 | 13 | |
Cash | 101 | 13 | ||
(To record the payment made on the newspaper ad) | ||||
November 9 | Phone Expense | 525 | 28 | |
Cash | 101 | 28 | ||
(To record the payment of phone bill) | ||||
November 10 | Electricity Expense | 533 | 21 | |
Cash | 101 | 21 | ||
(To record the payment of electricity bill) | ||||
November 11 | Cash | 101 | 200 | |
Accounts Receivable | 122 | 200 | ||
(To record the cash to be received on account) | ||||
November 12 | Cash | 101 | 200 | |
Accounts receivable | 122 | 250 | ||
Tailoring Fees | 401 | 450 | ||
(To record the cash on tailoring fees) | ||||
November 15 | Wages Expense | 511 | 400 | |
Cash | 101 | 400 | ||
(To record the payment made to the employee) | ||||
November 16 | Accounts Payable | 202 | 100 | |
Cash | 101 | 100 | ||
(To record the payment of cash on account) | ||||
November 17 | Miscellaneous Expense | 549 | 12 | |
Cash | 101 | 12 | ||
(To record the payment made for magazine subscription) | ||||
November 19 | Cash | 101 | 300 | |
Accounts receivable | 122 | 150 | ||
Tailoring Fees | 401 | 450 | ||
(To record the cash on tailoring fees) | ||||
November 23 | Cash | 101 | 300 | |
Accounts Receivable | 122 | 300 | ||
(To record the amount of cash received on account) | ||||
November 24 | Advertising expense | 512 | 13 | |
Cash | 101 | 13 | ||
(To record the payment made on the newspaper ad) | ||||
November 26 | Miscellaneous Expense | 549 | 12 | |
Cash | 101 | 12 | ||
(To record the payment made for magazine subscription) | ||||
November 27 | Cash | 101 | 200 | |
Accounts receivable | 122 | 400 | ||
Tailoring Fees | 401 | 600 | ||
(To record the cash on tailoring fees) | ||||
November 30 | Cash | 101 | 400 | |
Accounts Receivable | 122 | 400 | ||
(To record the cash received on account) |
(Table 1)
3.
3.
Explanation of Solution
Post the entries to the general ledger.
(Figure 18)
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(Figure 30)
(Figure 31)
4.
Prepare a
4.
Explanation of Solution
Prepare a trial balance.
Company T | |||
Trial balance | |||
November 31, 20.. | |||
Accounts | Account No. | Debit ($) | Credit ($) |
Cash | 101 | 7,012 | |
Accounts Receivable | 122 | 684 | |
Tailoring Supplies | 141 | 1,150 | |
Tailoring Equipment | 183 | 4,100 | |
Accounts Payable | 202 | 4,475 | |
Person A’s, Capital | 311 | 6,130 | |
Person A’s, Drawing | 312 | 800 | |
Tailoring Fees | 401 | 5,500 | |
Wages Expense | 511 | 1,200 | |
Advertising Expense | 512 | 60 | |
Rent Expense | 521 | 900 | |
Phone Expense | 525 | 88 | |
Electricity Expense | 533 | 65 | |
Miscellaneous Expense | 549 | 46 | |
Total | 16,105 | 16,105 |
(Table 2)
Therefore, the total of the debit and credit column of the trial balance reported an amount of $16,105.
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Chapter 4 Solutions
College Accounting, Chapters 1-27
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