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Solution: Alternate Demonstration Problem
Chapter Two
GENERAL JOURNAL
DATE ACCOUNT TITLES AND
EXPLANATION
P.R. DEBIT CREDIT
March 1 Cash 3 0 0 0 00
Bill Smith, Capital 3 0 0 0 00
Accounts Payable 1 0 0 00
17 Gas and Oil Expense 8 0 0 00
Cash 8 0 0 00
18 Salaries Expense 5 0 0 0 00
Cash 5 0 0 0 00
Cash 2 5 0 0 00
30 B. Smith, Withdrawals 2 0 0 0 00
Cash 2 0 0 0 00
Speedy Computer Service
Trial Balance
March 31, 2015
Cash 4 1 0 0 00
Accounts Receivable 6 0 0 00
Supplies 1 0 0 00
Gas & Oil Expense 8 0 0 00
Equipment Rental Expense 2 5 0 0 00
Salaries Expense 5 0 0 0 00
Totals 1 5 1 0 0 00 1 5 1 0 0 00
3. Speedy Computer Service
Income Statement
For the month ended March 31, 2015
Fees Earned............................................................... $12,000
Expenses:
4. Speedy Computer Service
Statement of Owner’s Equity
For the month ended March 31, 2015
Beginning Capital $0
Add: Investments $3,000
Net Income 3,700 6,700
5. Speedy Computer Service
Balance Sheet
March 31, 2015
Assets Liabilities and Owner’s Equity
Cash.................................. $4,100 Accounts payable ........... $ 100
6. First, note that the cash investment ($2,000) and cash withdrawal
($2,000) affect the cash balance but do not affect the amount of net
