2000 down paid 1500 on the open account relating to

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Unformatted text preview: - SALARY EXPENSE Date Description Debit June 1 Credit - Balance - - RENT EXPENSE Date Description Debit June 1 Credit - Balance - - Download free eBooks at bookboon.com 30 Accounting Cycle Exercises II Problem 6: Worksheet TRAVEL EXPENSE Date Description Debit June 1 Credit - Balance - - SUPPLIES EXPENSE Date Description Debit June 1 Credit - Balance - - Worksheet 6 (c) STUDIPTA GUMM CONSULTING Trial Balance June 30, 20XX Debits Credits Download free eBooks at bookboon.com 31 Accounting Cycle Exercises II Problem 6: Solution Solution 6 (a) GENERAL JOURNAL Date June 2 Accounts Debit Cash Credit 50,000 Capital Stock 50,000 Sudipta Gumm invested $50,000 cash in the capital stock of the newly formed corporation. June 8 Supplies Expense 1,500 Accounts Payable 1,500 Purchased (and immediately used) office supplies on account for $1,500. June 9 Cash 5,000 Revenues 5,000 Please click the advert Received $5,000 from Bangalore for work performed to date. Download free eBooks at bookboon.com 32 Accounting Cycle Exercises II June 15 Problem 6: Solution Travel Expense 2,400 Cash 2,400 Paid $2,400 for travel costs associated with consultation work. June 16 Accounts Receivable 6,000 Revenues 6,000 Provided services on account to Amalga for $6,000. June 17 Salary Expense 3,000 Cash 3,000 Paid $3,000 to administrative assistant for salary. June 23 Accounts Receivable 8,000 Revenues 8,000 Billed Wheel for $8,000 consulting engagement performed. June 25 Dividends 2,000 Cash 2,000 The company paid Sudipta Gumm $2,000 dividend. June 26 Cash 4,000 Accounts Receivable 4,000 Collected 50% of the amount due for the billing on June 23. June 27 Equipment 8,000 Cash 2,000 Accounts Payable 6,000 Purchased computer furniture for $8,000, paying $2,000 down. June 27 Accounts Receivable 1,500 Cash 1,500 Paid $1,500 on the open account relating to the June 8 purchase. June 28 Accounts Receivable 10,000 Revenues 10,000 Completed the Bangalore job and billed the remaining amount. Download free eBooks at bookboon.com 33 Accounting Cycle Exercises II June 30 Problem 6: Solution Salary Expense 1,500 Cash 1,500 Paid $3,000 to administrative assistant for salary. June 30 Rent Expense 1,000 Cash 1,000 Paid rent for June, $2,000. Solution 6 (b) CASH Date Description June 1 June 2 Debit Balance forward Credit Balance - - - Journal Page 1 50,000 - 50,000 June 9 Journal Page 1 5,000 - 55,000 June 15 Journal Page 1 - 2,400 52,600 June 17 Journal Page 1 - 3,000 49,600 June 25 Journal Page 2 - 2,000 47,600 June 26 Journal Page 2 4,000 - 51,600 June 27 Journal Page 2 - 2,000 49,600 June 27 Journal Page 2 - 1,500 48,100 June 30 Journal Page 3 - 3,000 45,100 June 30 Journal Page 3 - 2,000 43,100 ACCOUNTS RECEIVABLE Date June 1 Description Debit Balance forward Credit Balance - - - June 16 Journal Page 1 6,000 - 6,000 June 23 Journal Page 2 8,000 - 14,000 June 26 Journal Page 2 - 4,000 10,000 June 28 Journal Page 2 10,000 - 20,000 EQUIPMENT Date June 1 June 27 Description Debit Balance forward Credit...
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