ACU 2 - UNIT 2 ASSETS DR. CR. RECORDING = TRANSACTIONS +...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: UNIT 2 ASSETS DR. CR. RECORDING = TRANSACTIONS + LIABILITIES DR. I + ' - . . DR. OWNER'SEOUITY DR. CR. - + I Google "Free Quick Notes Books" for your copies of Quick Notes Accounting, Economics, Statistics, and Excel Statistics Lab Manual. WITHDRAWAT ,R + I CR. - EXPENSES REVENUE + DR. I CR. + DR. CR. I I. JOURNALENTRIES In the preceding learning unit, transactions were recorded in T accounts because students find it easier to analyze transactions with T accounts. This learning unit makes the transition from T accounts to Journal Entries, the first step of the accounting process. ANALYZING TRANSACI'IONS Assets Liabilities JOURNALIZING TRANSACTIONS DR. CR. + Owner IS Equity Account Debited Account Credited XXX XXX 1. Darin Jones, a sophomore at State University, started the Quick Clean Laundry Service with a $100 cash investment. Cash Capital. Darin Jones 100 I I 100 Cash Capital,Darin Jones Prepaid Advertising Cash 100 100 50 50 2. On Sept. 1, paid $50 for 5 months of ads in the school newspaper. Pr~id Advertising 50 I ~ I 50 3. On Sept. 1, purchased Laundry Supplies for $25 cash. Laundry S~plies Laundry Supplies Cash down. LaundryEquipment Cash Accounts Payable 25 25 25 I Cash I 25 $48 of Laundry Equipment Accounts Payable I 4. On Sept. 1, purchased Laundry Eq\l:i.pment paying $8 48 8 40 50 50 10 10 20 48 I 40 of $50. Capital. Cash I 8 Darin [ 5. Darin made an additional investment ~ 50 I Jones 50 Cash Capital,Darin Jones Accounts Payable 6. Paid one-fourth the amount owed on the Laundry Equipment. Cash Accounts Payable 10 10 7. Darin withdrew$20 for personaluse. Cash Withdrawals. Darin Jones 20 20 I I Cash Withdrawals, Darin Jones 20 Cash I I 8. Cash collected for Laundry Services performed during the month amounted to $140. $10 was also due for services rendered. ~ 140 I Laundry Revenue I Cash Accounts Receivable Laundry Revenue 150 140 10 150 Accounts Receivable 10 I 9. Paid $75 for the use of washers and dryers for September. Cash Washer/DJ:yer~e I 75 $5 on account. 75 Washer/Dryer Expense Cash 75 75 5 5 I 10. Received Cash 5 I Cash AccountsReceivable Accounts Receivable I 5 Unearned LaundryRevenue I 11. On Sept. 26, two students paid $10 for next week I s Laundry Service. Cash 20 I 20 Telephone~se Cash UnearnedLaundry Revenue Telephone Expense 20 20 10 10 12. Paid monthly phone bill of $10. Cash 10 I 10 I Cash 8 II. (1) (5) (8) (10) (11) Bal. 100 50 140 5 -2Q 315 117 Receivable I (10) (2) (3) (4) (6) (7) (9) (12) 50 25 8 10 20 75 JQ 198 Accounts (6) 10 GENERAL LEDGER Capital. 1 I Payable (4) 40 Darin (1) (5) Jones 100 50 Unearned LaunCb:y Revenues I (11) 20 Withdrawals, Darin Jones (7) 201 Business Software Library has free accounting, math and statistics software. Accounts (8) 10 5 Pre~aid Advertising I (2) 50 LaunCb:y (3) 25 LaunCb:y (4)8 ! Sup.plies Washer Dryer ~se (9) 7S1 Tele~hone ~nse (12) 10 I Laundry Revenue 1(8) 150 ! E~ipment III. Our Free Business Textbooks Library covers many subjects. Software Tutorial Internet Library has material to help with many popular software programs. Quick TRIAL BALANCE Service Trial Balance September 30, 1991 Clean Laundry Cash Accounts Receivable Prepaid Advertising Laundry Supplies Laundry Equipment Accounts Payable Unearned Laundry Revenue Capital, Darin Jones Withdrawals, Darin Jones Laundry Revenue Washer/Dryer Expense Telephone Expense $117 5 50 2S 48 $ 30 20 150 20 150 7S -ll. $350 $350 Note: Transaction No.1 has been formally journalized and posted below. PR stands for Post Reference. The relevant account number or General Journal page number is placed in the PR column at the time of posting. IV. DATE Sept. 1 GENERAL JOURNAL PR I Page DEBIT 100 00 100 00 II ACCOUNTTITLE Cash Capital, To record Darin cash AND EXPLANATION CREDIT 1 Jones investment. 100 v. DATE Sept. 1 EXPLANATION GENERAL LEDGER CASH PR 1 I ACCOUNT O.1 N DEBIT II CREDIT I BALANCE 100 00 100 00 DATE Sept. 1 EXPLANATION l");l\.RTN r(')N'R PR DEBIT 1 CREDIT 100 00 NO lO( BALANCE 100 00 Business Software Library has free accounting, mathematics, and statistics software. 9 ...
View Full Document

This note was uploaded on 10/27/2009 for the course MBA 1918272 taught by Professor Peter during the Fall '09 term at Aberystwyth University.

Ask a homework question - tutors are online