Page 1 12000 96000 jan 12 journal page 1 44000 140000

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: XPENSE Date Description Debit Jan. 1 Jan. 31 Credit Balance - - - 2,400 Journal Page 3 - 2,400 Download free eBooks at bookboon.com 45 Accounting Cycle Exercises II Problem 7: Solution Solution 7 (b) GENERAL JOURNAL Date Jan. 2 Accounts Debit Cash √ Accounts Receivable Credit 40,000 40,000 √ Collected $40,000 on an open account receivable. Jan. 3 Land √ Cash 80,000 80,000 √ Purchased additional tract of land for $80,000 cash. Jan. 5 Accounts Receivable √ Revenues 60,000 60,000 √ Provided services on account to a customer for $60,000. Jan. 7 Cash √ Loan Payable √ 48,000 48,000 Please click the advert Borrowed $48,000 on a term loan payable. We will turn your CV into an opportunity of a lifetime Do you like cars? Would you like to be a part of a successful brand? We will appreciate and reward both your enthusiasm and talent. Send us your CV. You will be surprised where it can take you. Send us your CV on www.employerforlife.com Download free eBooks at bookboon.com 46 Accounting Cycle Exercises II Jan. 11 Problem 7: Solution Salaries Expense √ Cash 12,000 12,000 √ Paid salaries of $12,000. Jan. 12 Cash √ Revenues 44,000 44,000 √ Provided services to customers for cash, $44,000. Jan. 15 Supplies Expense √ Accounts Payable 8,000 8,000 √ Purchased (and used) office supplies on account, $8,000. Jan. 17 Dividends √ Cash 10,000 10,000 √ The company paid shareholders a $10,000 dividend. Jan. 20 Rent Expense √ Cash 6,800 6,800 √ Paid rent of $6,800. Jan. 23 Salaries Expense √ Cash 16,000 16,000 √ Paid salaries of $16,000. Jan. 24 Accounts Payable √ Cash 64,000 64,000 √ Paid $64,000 on the open accounts payable. Jan. 29 Cash √ Accounts Receivable 200,000 200,000 √ Collected $200,000 on accounts receivable. Jan. 31 Loan Payable √ Cash 88,000 88,000 √ Repaid loans of $88,000. Jan. 31 Interest Expense √ Cash √ 2,400 2,400 Paid interest on loans of $2,400. Download free eBooks at bookboon.com 47 Accounting Cycle Exercises II Problem 7: Solution Solution 7 (d) HAGEN CORPORATION Trial Balance January 31, 20X6 Debits Cash $ Credits 152,800 $ - Accounts Receivable 120,000 Land 680,000 - - 184,000 Accounts Payable - Loan Payable 80,000 Capital Stock - 200,000 Retained Earnings 440,000 Revenues - 104,000 Salaries Expense 28,000 - Supplies Expense 8,000 - Rent Expense 6,800 - Interest Expense 2,400 - 10,000 - Dividends $ 1,008,000 $ 1,008,000 Please click the advert Are you remarkable? Win one of the six full tuition scholarships for International MBA or MSc in Management register now rode www.Nyen lenge.com MasterChal Download free eBooks at bookboon.com 48 Accounting Cycle Exercises II Problem 7: Solution Solution 7 (e) HAGEN CORPORATION Income Statement For the Month Ending January 31, 20X6 Revenues Services to customers $ 104,000 Expenses Salaries $ 28,000 Supplies 8,000 Rent 6,800 Interest 2,400 Net income 45,200 $ 58,800 HAGEN CORPORATION Statement of Retained Earnings For the Month Ending January 31, 20X6 B...
View Full Document

This document was uploaded on 09/24/2013.

Ask a homework question - tutors are online