2 anthony moore recently formed an information

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Unformatted text preview: nd has not yet had an opportunity to install his computerized accounting package. But, he did understand the need to keep track of all transactions as they occurred. Following is a manual journal that he maintained for transactions occurring during January. All amounts are in the British Pound. Anthony has requested that you prepare a ledger of the company’s accounts, and post these transactions to determine the balance of each account. He needs this data in order to begin the process of transitioning to his new computerized accounting system. GENERAL JOURNAL Date 2-Jan-05 Accounts Debit Cash Credit 3,000,000 Capital Stock 3,000,000 Anthony invested cash in exchange for stock 4-Jan-05 Equipment 600,000 Loan Payable 600,000 Purchased equipment with proceeds of loan 6-Jan-05 Accounts Receivable 900,000 Revenues 900,000 Provided services to customers on account 7-Jan-05 Supplies Expense 30,000 Accounts Payable 30,000 Purchased (on account) and used supplies 11-Jan-05 Accounts Payable 30,000 Cash 30,000 Paid for purchase of Jan. 7 15-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee Download free eBooks at bookboon.com 10 Accounting Cycle Exercises II 17-Jan-05 Problem 2 Cash 450,000 Accounts Receivable 450,000 Collected partial payment on receivables 18-Jan-05 Cash 540,000 Revenues 540,000 Provided services to customers for cash 20-Jan-05 Supplies Expense 60,000 Accounts Payable 60,000 Purchased (on account) and used supplies 31-Jan-05 Wage Expense 300,000 Cash 300,000 Paid employee 31-Jan-05 Loan Payable 600,000 Interest Expense 6,000 Cash 606,000 Paid off the loan with interest Excellent Economics and Business programmes at: Please click the advert “The perfect start of a successful, international career.” CLICK HERE to discover why both socially and academically the University of Groningen is one of the best places for a student to be www.rug.nl/feb/education Download free eBooks at bookboon.com 11 Accounting Cycle Exercises II Problem 2: Worksheet Worksheet 2 CASH Date Description 01-Jan-05 Balance forward 02-Jan-05 Debit Journal Page 1 Credit Balance - - - 3,000,000 - 3,000,000 ACCOUNTS RECEIVABLE Date 01-Jan-05 Description Debit Balance forward Credit - Balance - - EQUIPMENT Date 01-Jan-05 Description Debit Balance forward Credit - Balance - - ACCOUNTS PAYABLE Date 01-Jan-05 Description Debit Balance forward Credit - Balance - - LOAN PAYABLE Date 01-Jan-05 Description Debit Balance forward Credit - Balance - - CAPITAL STOCK Date 01-Jan-05 Description Debit Balance forward Credit - Balance - - Download free eBooks at bookboon.com 12 Accounting Cycle Exercises II Problem 2: Worksheet REVENUES Date Description Debit 01-Jan-05 Credit - Balance - - SUPPLIES EXPENSE Date Description Debit 01-Jan-05 Credit - Balance - - WAGE EXPENSE Date Description Debit 01-Jan-05 Credit - Balance - - INTEREST EXPENSE Date Description Debit 01-Jan-05 Credit - Balance - - Please click the advert Teach with the Best. Learn with the Best. Agilent offers a wide variety of affordable, industry-leading electronic test equipm...
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This document was uploaded on 09/24/2013.

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