Download Demo Handout #2 ("General Journal Entries" - Debit

Demo 3-2 SOLUTION - General Journal Entries (Debits & Credits)
Required:
Record the following transactions in general journal. Record the event number in the date column.
1. Issued common stock for $5,000 cash.
2. Borrowed $4,000 cash from a local bank.
3. Purchased $500 of supplies on account.
4. Recognized revenue of $8,000 for services provided on account.
5. Paid $3,900 cash for salaries expense.
6. Paid $2,400 cash in advance for a one-year lease to rent office space.
7. Purchased $3,500 of office furniture on account.
8. Received $1,800 cash for services to be performed in the future.
9. Collected $3,000 cash from accounts receivable.
10. Paid $1,200 cash for utilities.
11. Paid dividends of $1,000 cash to the stockholders.
12. Invested $2,000 cash in a certificate of deposit.
13. Repaid $1,600 of the bank loan described in Event No. 2.
14. Purchased land for $2,700 cash.
Period-End Analysis & Adjustments:
15. Recognized $400 of accrued interest expense.
16. Completed $1,800 of services on contract described in Event No. 8.
17. Counted supplies on hand at the end of the accounting period.
Determined that $400 of supplies were used during the accounting period.
18. Recognized accrued salary expense of $2,300.
19. Recognized $150 of accrued interest revenue.
Demonstration Problem 3-2 Solution
Date
Event No.
1
Event No.
2
Event No.
3
Event No.
4
Event No.
Event No.
Event No.
5
6
7
Event No.
8
Event No.
9
Event No.
10
Event No.
11
Event No.
Event No.
Event No.
Event No.
Event No.
Event No.
12
13
14
15
16
17
Event No.
18
Event No.
19
Account Titles
Cash
Common Stock
Cash
Notes Payable
Supplies
Accounts Payable
Accounts Receivable
Service Revenue
Salaries Expense
Cash
Prepaid Rent
Cash
Office Furniture
Accounts Payable
Cash
Unearned Revenue
Cash
Accounts Receivable
Utilities Expense
Cash
Dividends
Cash
Certificate of Deposit
Cash
Notes Payable
Cash
Land
Cash
End of Period Adjusting Entries:
Note: Accrual-basis acct adjustments
will not include any entries to Cash!
Interest Expense
Interest Payable
Unearned Revenue
Service Revenue
Supplies Expense
Supplies
Salaries Expense
Salaries Payable
Interest Receivable
Interest Revenue
Debit
5,000
Credit
5,000
4,000
4,000
500
500
8,000
8,000
3,900
3,900
2,400
2,400
3,500
3,500
1,800
1,800
3,000
3,000
1,200
1,200
1,000
1,000
2,000
2,000
1,600
1,600
2,700
2,700
400
400
1,800
1,800
400
400
2,300
2,300
150
150