Topic1LectureProblems.docx - Problem 3.13 Journal entries...

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Problem 3.13 Journal entries, posting to T ledger accounts, And trial balance SOLUTIONS In September 2016, Niem Duong opened a car hire business. The following transactions occurred during the first month of the business (ignore GST). Sep. 1 3 4 5 15 18 19 24 27 29 30 Niem opened a bank account to begin the business and deposited $500 000 of her own money. Paid $1200 rent for the premises for September. Purchased ten motor vehicles costing $40 000 each and equipment costing $36 000 with $300 000 cash and a commercial loan for the balance. Purchased supplies costing $12 500 on credit. Recorded revenue for the first half of the month of $14 600 in cash and $28 500 on credit. Paid for supplies purchased on 5 September. Paid insurance expense for September of $5000. Received payment from customers on account of $12 400 and banked the receipts. Purchased supplies costing $6200 on credit. Recorded revenue for the second half of the month of $12 500 in cash and $32 800 on credit. Paid fuel expense of $16 200 in cash. Required A. Journalise the above transactions. B. Post the first 4 entries entries to T ledger accounts C. Use the running balance ledger accounts provided to prepare a trial balance as at 30 September 2016.
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A. Journalise the above transactions. General Journal 2016 Sep. 1 Cash at Bank 500 000 N. Duong, Capital 500 000 Cash invested by owner 3 Rent Expense 1 200 Cash at Bank 1 200 Rent paid 4 Motor Vehicles 400 000 Equipment 36 000 Cash at Bank 300 000 Loan Payable
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