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3-95
146.
Journalize and post basic transactions
Precision Grading Co. was organized to grade construction sites.
* On June 1, owner Dave Precision deposited $90,000 in a new bank account opened in
the name of the business in exchange for stock.
* On June 3, the company acquired grading equipment costing $89,000, paying $43,000
cash and signing a note payable for the balance.
* On June 10, the company paid $13,000 of the amount owed for equipment acquired on
June 3.
Instructions: Journalize these three transactions and post to the ledger accounts.
3-99
147.
Journalize and post basic transactions
Geller Landscaping was organized on April 5 when the corporation issued 20,000 shares of
capital stock to Larry Geller in exchange for $60,000 cash.
* On April 8, the business acquired gardening equipment by paying cash of $26,000 and
signing a $20,000 note payable, due in four monthly installments of $5,000 each, beginning
on April 15.
* On April 15, Larry Geller made the first payment on the note payable by writing a check
from the business bank account.
Instructions: Journalize these three transactions and post to the ledger accounts.
148.
Matching principle
In April, Grinnel Paving, Inc. acquired a large quantity of crushed stone on account with
payment due in 90 days. The stone was used in May when Grinnel Paving, Inc. completed
a large parking lot for a local shopping center. In early July, Grinnel Paving, Inc. paid the
supplier from which the crushed stone had been purchased. In which month should
Grinnel Paving, Inc. recognize the cost of the crushed stone as an expense? What
accounting principle provides the justification for the answer?
149.
Given the following list of accounts and their amounts for Hayden's Co. in alphabetical
order, prepare a trial balance for December 31, 2014 as it should be presented.
150.
The following trial balance of Brian's Pickle Co. for June 30, 2014 does not balance.
The following errors were discovered:
1. A purchase of supplies for cash was posted as $40 when it should have been $400.
2. The first two numbers of the amount for notes payable were transposed while being
copied from the account balance to the trial balance. The correct amount of Notes Payable
should be $51,500.
3. A collection of cash was debited to the cash account in the amount of $5,500 but was
not credited to the revenue account.
4. A purchase of supplies for $725 on account was not recorded.
Instructions: Prepare a corrected trial balance
