Concept explainers
Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order.
Accounting rules regarding journal entries:
- Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.
- Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited
General Ledger:
The general ledger records all accounts relevant to depict its assets, liabilities, and equities along with the incomes, expenses, and losses etc in a summarized form. It includes the debit and credit values of all the accounts, of which both, the total of all debit values and credit values should equalize. All the accounts are allotted a unique identifying numbers of the account to be more record friendly for its end users in later stages of preparation of financial statements.
A trial balance is a statement where the closing balances of all ledgers accounts are mentioned and the total debit and credit amounts are equalized at the end so as to depict the proper balance of assets and liabilities of the company.
1.
To prepare: Journal entries and post them in T-accounts.
2.
To prepare: Journal entries and post them in T-accounts
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FINANCIAL ACCT.FUND.(LOOSELEAF)
- Additional Activities Directions: Do the task listed bélow using the transacions of Matapang Company for Deccmber 2019. Writc your answers on a separate sheet of paper. 1. Prepare the journal entries. 2. Post each transaction to its ledger account. 3. Prepare the trial balance. 4. Use the provided account numbers. Ralph Matapang cstablishcd Happy Repair Busincss. The following are the transactions for the montb of Decembocr 2019. Dec. He invested P150,000 in the firm. He paid P8,000 for monthly rent. He bought supplies on account amounting to P7,200. He purchascd office equipment amounting to P75,000. paid P37,000 and the balance on account. 2. 2. 3. He paid accounts payable for supplies purchased worth P7,200. He paid P6,000 for the salary of an employec. He received P20,000 for services rendered. He billed clients P48,000 for services on account. 8. 14. 20. 28. 31. Matapang withdrew P12,000 for his personal use. 302 Matapang, Drawings 401 Service Revenue 101 Cash 102 Accounts…arrow_forwardGENERAL LEDGER ACCOUNTS Set up T accounts for each of the general ledger accounts needed for Exercise 4-2A and post debits and credits to the accounts. Foot the accounts and enter the balances. Prove that total debits equal total credits.arrow_forwardThe cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of 2,230, consisting of an amount owed to Augusta Sod Co. Prepare a schedule of the accounts payable creditor balances and determine that the total agrees with the ending balance of the accounts payable controlling account.arrow_forward
- d. Journalize the summary entry to record the completion of Vault Bank and Take Off Airlines for the month. If an amount box does not require an entry, leave it blank. Debit Credit d. Cost of Services $ $ Work in Process $ $arrow_forwardPosting the following journal entries to the T- accounts and balance each of the accounts. T- accounts are included in the in the Exam 1 format document. Make sure you use proper alpha reference and balance technique. GENERAL JOURNAL Page Date Debit Credit Description Post ref Cash Common Stock 10,000 1. 10,000 2 Equipment Accounts Payable 10,000 10,000/5 Accounts Receivable Fees Earned 4,000 4.000 8 d. 5.000 10 Accounts Payable Cash 10 11 12 5,000/11 12 13 2.500 Rent Lxpense Cash 13 2,500/14 / 15 14 15arrow_forwardRequired :1. Record Journal Entries2. Post them into the ledger accounts3. Prepare the Trial Balance as on 31.12.2020arrow_forward
- Transactions are first journalized and then posted to ledger accounts. In this exercise, however,your understanding of the relationship between the journal and the ledger is tested by asking you tostudy some ledger accounts and determine the journal entries that probably were made to producethese ledger entries. The following accounts show the first six transactions of Avenson InsuranceCompany. Prepare a journal entry (including a written explanation) for each transaction. Cash VehiclesNov. 1 120,000 Nov. 8 33,600 Nov. 30 9,400Nov. 25 12,000Nov. 30 1,400Land Notes PayableNov. 8 70,000 Nov. 25 12,000 Nov. 8 95,000Nov. 30 8,000Building Accounts PayableNov. 8 58,600 Nov. 21 480 Nov. 15 3,200Office Equipment Capital StockNov. 15 3,200 Nov. 21 480 Nov. 1 120,000arrow_forwardJournalizing transactions and posting to T-accounts Roland Poster Optical Dispensary completed the following transactions during the latter part of March: Requirements Journalize the transactions of Roland Foster Optical Dispensary. Include an explanation with each journal entry. Open the following accounts (use T-account format): Cash (Beginning Balance of $21,000), Office Supplies, and Accounts Payable. Post the journal entries from Requirement 1 to the accounts, and compute the balance in each account.arrow_forwardHi, for the last part of this question, it says "After you prepare the schedule of accounts payable creditor balances, determine that the total agrees with the ending balance of the Accounts Payable controlling account."Outdoor Artisan LandscapingAccounts Payable(Controlling)Balance, June 1, 20Y1 $Total credits (from purchases journal)Total debits (from cash payments journal)Balance, June 30, 20Y1 $How would I solve this problem? I've attached a picture of the original questionarrow_forward
- Balance off the accounts in the ledger and extract a trial balancearrow_forwardJournalizing transactions, posting to T-accounts, and preparing a trial balance Consider the following transactional data for the first month of operations for Crystal Clear Cleaning. Requirements Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Cleaning Supplies; Prepaid Rent; Prepaid insurance; Equipment; Truck; Accounts Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Advertising Expense; and Utilities Expense. Explanations are not required. Open a T-account for each account. Post the journal entries to the T-accounts, and calculate account balances. Prepare a trial balance as of November 30, 2018.arrow_forwardINSTRUCTION: Determine the ending balances of the accounts (Cash, Supplies, Equipment, Account Payable, and Note Payable) based on the following journal entries. You may want to prepare a T-account for each account to determine the answer. See exhibit 2.11 on textbook page 66 for examples of how this is done. DR CR a) Cash $3,900.00 Note Payable $ 3,900.00 b) Equipment $1,000.00 Note Payable $ 1,000.00 c) Supplies $300.00 Cash $300.00 d) Supplies $700.00 Account Payable $700.00 e) Note Payable $900.00 Cash $900.00 For example, The ending balance of the 'Equipment' account is $1000 DR(There is only one debit entry for equipment-see…arrow_forward
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