Page 3 3000 6000 rent expense date description debit

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Unformatted text preview: an. 15 Purchased (and used) office supplies on account, $8,000. Jan. 17 The company paid shareholders a $10,000 dividend. Jan. 20 Paid rent of $6,800. Jan. 23 Paid salaries of $16,000. Jan. 24 Paid $64,000 on the open accounts payable. Jan. 29 Collected $200,000 on accounts receivable. Jan. 31 Repaid loans of $88,000. Jan. 31 Paid interest on loans of $2,400. a) Create the general ledger accounts, and enter the initial balances at the start of the month of January. This requirement is already completed on the worksheets. b) Prepare journal entries for January’s transactions. c) Post January’s transactions to the appropriate general ledger accounts. d) Prepare a trial balance as of January 31. e) Prepare an income statement and statement of retained earnings for January, and a balance sheet as of the end of January. Download free eBooks at bookboon.com 37 Accounting Cycle Exercises II Problem 7: Worksheet Worksheet 7 (a) CASH Date Jan. 1 Description Debit Balance forward Credit - Balance - 100,000 ACCOUNTS RECEIVABLE Date Jan. 1 Description Debit Balance forward Credit - Balance - 300,000 LAND Date Jan. 1 Description Debit Balance forward Credit - Balance - 600,000 ACCOUNTS PAYABLE Date Jan. 1 Description Debit Balance forward Credit - Balance - 240,000 LOAN PAYABLE Date Jan. 1 Description Debit Balance forward Credit - Balance - 120,000 Download free eBooks at bookboon.com 38 Accounting Cycle Exercises II Problem 7: Worksheet CAPITAL STOCK Date Jan. 1 Description Debit Balance forward Credit - Balance - 200,000 RETAINED EARNINGS Date Jan. 1 Description Debit Balance forward Credit - Balance - 440,000 DIVIDENDS Date Description Debit Jan. 1 Credit - Balance - - REVENUES Date Description Debit Jan. 1 Credit - Balance - - SALARIES EXPENSE Date Description Debit Jan. 1 Credit - Balance - - SUPPLIES EXPENSE Date Description Debit Jan. 1 Credit - Balance - - RENT EXPENSE Date Description Debit Jan. 1 Credit - Balance - - INTEREST EXPENSE Date Description Debit Jan. 1 Credit - Balance - - Download free eBooks at bookboon.com 39 Accounting Cycle Exercises II Problem 7: Worksheet Worksheet (b) GENERAL JOURNAL Date Accounts Debit Credit Jan. 2 Jan. 3 Jan. 5 Jan. 7 Jan. 11 Jan. 12 Jan. 15 Jan. 17 Jan. 20 Jan. 23 Download free eBooks at bookboon.com 40 Accounting Cycle Exercises II Problem 7: Worksheet Jan. 24 Jan. 29 Jan. 31 Jan. 31 e Graduate Programme for Engineers and Geoscientists I joined MITAS because I wanted real responsibili Please click the advert Maersk.com/Mitas Real work Internationa al International opportunities ree wor o ree work placements Month 16 was I was a construction supervisor in the North Sea advising and helping foremen he solve problems s Download free eBooks at bookboon.com 41 Accounting Cycle Exercises II Problem 7: Worksheet Worksheet 7 (d) HAGEN CORPORATION Trial Balance January 31, 20X6 Debits Cash $ Credits - $ - Accounts Receivable Land Accounts Payable Loan Payable Capital Stock Retained Earnings Revenues 104,000 Salaries E...
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This document was uploaded on 09/24/2013.

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