2 14,400
14,400
Issued 14,400 shares of $1 par value
common stock
5,800
Purchased shed to store bicycles
for cash
8 800
800
Paid for supplies purchased on June 3
Chapter 2, P 7.
June
Common Stock
Shed
1. Journal entries prepared
Cash
Cash
Cash
78
18 110
110
29 480
480
Paid wages of assistant
30 1,000
1,000
Chapter 2, P 7. (Continued)
Cash
Dividends
June
Wages Expense
Repair Expense
Cash
Cash
14,400 6/4 2,400 6/23 220 6/3 300
1,940 6/5 5,800
1,920 6/8 800
800 6/4 2,600
6,600 300 2,900
Bal. 2,600
6/2 14,400 6/30 1,000 6/13 1,940
Dividends Rental Revenue
Common Stock
Bal.
6/8
Chapter 2, P 7. (Continued)
Accounts Receivable
6/13
Supplies
2. T accounts set up and entries posted from the journal
Cash
6/2
6/27
$ 7,020
220
300
6,600
5,000
$21,080 $21,080
4. User Insight: Recognition and classification discussed
June 30, 2011
Bicycles
Shed
Accounts Receivable
Supplies
Chapter 2, P 7. (Continued)
Trial Balance
3. Trial balance prepared
Kluz Rentals, Inc.
June 3 and 10 are the recognition points for these transactions. June 3 is the
Cash
recognition point for the purchase of supplies because it is on June 3 when
the title to the supplies passes and there is an obligation to pay. June 10 is the
Page 22
Post.
Ref. Debit Credit
411 2,800
Billed customers for services
12 212 1,100
111 1,100
Paid on account
24 513 280
111 280
Paid August utility bill
26 515 700
212 700
Accounts Payable
Utilities Expense
Advertising Expense
Cash
Accounts Payable
Cash
Marketing Fees
Chapter 2, P 8.
3. Transactions entered in the general journal
Date Description
(Requirements 1, 2, 4, and 5 follow)
General Journal
Page 23
Post.
Ref. Debit Credit
30 511 3,800
111 3,800
Paid salaries for August
31 313 1,200
Date
2011
Cash
Salaries Expense
Dividends
General Journal
Description
Chapter 2, P 8. (Continued)
Ref. Debit Credit Debit Credit
31 10,200
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Item
Post.
Supplies Account No. 115
Balance
2011
Balance
Chapter 2, P 8. (Continued)
2. Amounts from July trial balance entered
1. Ledger accounts set up
Cash Account No. 111
Item
Entries from journal posted to ledger accounts4.
Date
2011
July Balance
Accounts Receivable
Balance
Account No. 113
Item
Post.
Post.
Date
Date
84
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
31 2,600
Ref. Debit Credit Debit Credit
31 12,000
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Post.
2011
July Balance
Balance
Item
Account No. 212Accounts Payable
Chapter 2, P 8. (Continued)
Office Equipment Account No. 141
Balance
Item
Common Stock
Post. Balance
Account No. 311
Account No. 312
Item
Item
2011
July Balance
Retained Earnings
Balance
Post.
Dividends Account No. 313
Balance
Item
Post.
Date
Date
Date
Date
Date
Post.
85
Ref. Debit Credit Debit Credit
10 J22 2,800 2,800
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Date
Date
Date
Date
Post.
Balance
Item
Post.
Utilities Expense Account No. 513
2011
Balance
Item
Post.
Item
Rent Expense Account No. 512
Item
Account No. 511Salaries Expense
2011
Balance
Aug.
Account No. 411
Balance
Post.
Chapter 2, P 8. (Continued)
Marketing Fees
2011
86
$10,270
8,700
910
4,200
$ 2,500
6. User Insight: Transactions for August 3, 10, 19, and 29 examined
Cash
Office Equipment
Accounts Receivable
Supplies
Trial Balance
August 31, 2011
Trial balance prepared
Accounts Payable
5.
Brilliant Ads Corporation
Chapter 2, P 8. (Continued)
87
Debit Credit
a. Paid for supplies purchased on credit last month. 7 1
b. Billed customers for services performed. 2 11
c. Paid the current month’s rent. 12 1
d. Purchased supplies with cash. 3 1
i. Received payments from customers previously billed. 1 2
j. Paid the bill received in g.71
Chapter 2, P 9.
88
f. 1,910 j. 1,060 e. 270
1,060 c. 220 1,910 1,060
4,300 a. 5,400 h. 270 e. 270
499 g. 425 g. 924
4,799 Bal. 5,825 270 1,194
Bal. 924
g.
a.
Accounts Payable
Bal.
Office Equipment
j.
6,100 b. 700
T accounts set up
Transactions recorded in the accounts
1.
2.
a.
Cash
Chapter 2, P 10.
Accounts Receivable Supplies
Computers
89