Journal Entries Project Paper

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ybyntvey

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Description

You are the owner of a startup business that provides a service. Because you were a startup, you decided to keep your books. Because your intention is to grow your business and you are familiar with US GAAP, you decided to keep your books using the accrual accounting method so the company’s transactions and financial status would be easily understandable for potential investors. Here are the transactions you will journalize, add to ledgers and adjust where necessary.

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LEDGER OF ACCOUNTS Asset Accounts Cash Inventory Prepaid Rent Prepaid Insurance Operating Equipment Accumulated Depreciation (Op Eq) Accounts Receivable Notes Receivable Land Revenue Accounts Acct # 101 102 103 104 105 106 107 108 109 110 111 112 Liability Accounts Acct # 201 202 203 204 Notes Payable Accounts Payable Wages Payable Interest Payable Equity Accounts Common Stock Dividends Acct # 301 302 Service Revenue Sales Revenue Acct # 401 402 Expense Accounts Office Supplies Expense Wages Expense Travel Expense Meals & Entertainment Rent Expense Insurance Expense Telephone Expense Interest Expense Depreciation Expense Misc. Expense Cost of Goods Sold Tax Expense Acct # 501 502 503 504 505 506 507 508 509 510 511 512 Journal Entries Put entries in shaded cells Date Account Name / Ledger # All Journal entries should balance to ZERO -----> Debit Credit 0.00 T-Accounts (Assets) DEBIT CREDIT Date Q1-Q3 Cash - 101 53,619.08 Balance 53,619.08 53,619.08 DEBIT Date Q1-Q3 Oct Nov Balance CREDIT Prepaid Insurance - 104 500.00 250.00 250.00 500.00 0.00 DEBIT Date Q1-Q3 Balance - 500.00 CREDIT Accounts Receivable - 107 - 0.00 - T-Accounts (Liabilities) DEBIT Date Q1-Q3 CREDIT Notes Payable - 201 - Balance DEBIT Date Date Q1-Q3 Wages Payable - 203 0.00 CREDIT Accounts Payable - 202 - Balance CREDIT Balance 0.00 DEBIT DEBIT Date CREDIT Interest Payable - 204 Balance 0.00 0.00 T-Accounts (Equity & Revenue) DEBIT Date Q1-Q3 CREDIT Service Revenue - 401 - Balance DEBIT 0.00 CREDIT DEBIT Date Q1-Q3 CREDIT Sales Revenue - 402 - Balance DEBIT 0.00 CREDIT T-Accounts (Expenses) DEBIT Date Q1-Q3 Balance 845.00 845.00 DEBIT Date Q1-Q3 Balance Balance DEBIT Balance 36,900.00 36,900.00 DEBIT Balance 13,500.00 13,500.00 DEBIT Date Q1-Q3 Balance Balance 3,000.00 3,000.00 DEBIT Date Q1-Q3 Oct Nov Balance CREDIT Date Q1-Q3 Balance - CREDIT Insurance Expense - 506 2,250.00 250.00 250.00 2,750.00 2,750.00 DEBIT Interest Expense - 508 - 0.00 CREDIT Travel Expense - 503 3,000.00 CREDIT Rent Expense - 505 13,500.00 CREDIT DEBIT Date Q1-Q3 - Date Q1-Q3 - Telephone Expense - 507 1,200.00 1,200.00 1,200.00 Wages Expense - 502 36,900.00 CREDIT 159.92 159.92 CREDIT Date Q1-Q3 - Meals & Entertainment - 504 159.92 DEBIT Date Q1-Q3 CREDIT Office Supplies Expense - 501 845.00 - CREDIT Depreciation Expense - 509 - 0.00 - Trial Balance Account Cash - 101 Inventory - 102 Prepaid Rent - 103 Prepaid Insurance - 104 Operating Equipment - 105 Accumulated Depreciation (Op Eq) - 106 Accounts Receivable - 107 Notes Receivable - 108 Land - 109 0 0 0 Notes Payable - 201 Accounts Payable - 202 Wages Payable - 203 Interest Payable - 204 0 0 Common Stock - 301 Dividends - 302 Service Revenue - 401 Sales Revenue - 402 0 0 Office Supplies Expense - 501 Wages Expense - 502 Travel Expense - 503 Meals & Entertainment - 504 Rent Expense - 505 Insurance Expense - 506 Telephone Expense - 507 Interest Expense - 508 Depreciation Expense - 509 Misc. Expense - 510 Cost of Goods Sold - 511 Tax Expense - 512 Totals Unadjusted trial balance Debit 53,619.08 - Adjusting entries Debit Credit Credit Adjusted trial balance Debit Credit 53,619.08 - - - - - - 845.00 36,900.00 3,000.00 159.92 13,500.00 2,750.00 1,200.00 - 111,974.00 845.00 36,900.00 3,000.00 159.92 13,500.00 2,750.00 1,200.00 - - - - 111,974.00 - Adjusting Journal Entries Put entries in shaded cells Date Account Name / Ledger # All Journal entries should balance to ZERO -----> Debit 0.00 s Credit 0.00 Income Statement Oct - Dec Revenues: Service Revenue Sales Revenue Total Revenues - Gross Profit - Office Supplies Expense Wages Expense Travel Expense Meals & Entertainment Rent Expense Insurance Expense Telephone Expense Depreciation Expense Misc. Expense Total Operating Expenses - PBIT Income - Net Income - Cost of Goods Sold Operating Expenses: Interest Expense Tax Expense Balance Sheet Assets Liabilities and Owners' Equity Current Assets: Cash Current Liabilities: Total Current Liabilities - Long-Term Liabilities: Total Long-Term Liabilities Total Current Assets - Long-Term/Fixed Assets: - Total Liabilities: - Total Equity: - Total Liabilities & Equity: - Equity: Less Accumulated Depreciation (contra account) Total Long-Term/Fixed Assets - Total Assets: -
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Explanation & Answer

Attached.

LEDGER OF ACCOUNTS

Asset Accounts
Cash
Inventory
Prepaid Rent
Prepaid Insurance
Operating Equipment
Accumulated Depreciation (Op Eq)
Accounts Receivable
Notes Receivable
Land

Revenue Accounts
Acct #
101
102
103
104
105
106
107
108
109
110
111
112

Liability Accounts
Acct #
201
202
203
204

Notes Payable
Accounts Payable
Wages Payable
Interest Payable

Equity Accounts
Common Stock
Dividends

Acct #
301
302

Service Revenue
Sales Revenue

Acct #
401
402

Expense Accounts
Office Supplies Expense
Wages Expense
Travel Expense
Meals & Entertainment
Rent Expense
Insurance Expense
Telephone Expense
Interest Expense
Depreciation Expense
Misc. Expense
Cost of Goods Sold
Tax Expense

Acct #
501
502
503
504
505
506
507
508
509
510
511
512

Journal Entries
Put entries in shaded cells

Date
1-Oct

3-Oct

5-Oct

7-Oct

15-Oct

22-Oct

2-Nov

4-Nov

7-Nov

Account Name / Ledger #
cash
Rent expense

office expenses
accounts payable

Debit

1.500,00
1.500,00

213,00
213,00

cash
service revenue

5.000,00

wages expense
wages expense

2.050,00

cash
service revenue

10.000,00

wages expense
cash

2.050,00

rent expense
cash

1.500,00

service revenue
accounts receivables

6.000,00

wages
cash

2.050,00

5.000,00

2.050,00

10.000,00

2.050,00

1.500,00

6.000,00

2.050,00

13-Nov cash
Notes payable

13-Nov interest payable
interest expense

45....


Anonymous
I was having a hard time with this subject, and this was a great help.

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