1. Analyze each transaction for its effects on the accounts.
2. Enter the transaction information in a journal.
3. Transfer the journal information to the appropriate accounts in the ledger.
simple entry
compound entry
Debits be listed before the credits.
Kate Browne engaged in the following activities in establishing her salon, Hair It Is:
1. Opened a bank account in the name of Hair It Is and deposited $20,000 of her own money in this
account as her initial investment.
2. Purchased equipment on account (to be paid in 30 days) for a total cost of $4,800.
3. Interviewed three people for the position of hair stylist. Chỉ ghi nhận những transaction làm thay đổi số tiền.
Prepare the entries to record the transactions.
Hire, order, contact, promise argument etc are not financial transactions.
General ledger
Posting
Three-column form of account
It has three money columns: debit, credit, and balance. The balance in the account is determined
after each transaction.
chart of accounts
Rent Revenue
On October 1, C. R. Byrd invests $10,000 cash in an advertising company called Pioneer Advertising.
On October 1, Pioneer purchases office equipment costing $5,000 by signing a 3-month, 12%, $5,000
note payable.
On October 2, Pioneer receives a $1,200 cash advance from R. Knox, a client, for advertising services
that are expected to be completed by December 31.
On October 3, Pioneer pays office rent for October in cash, $900.
On October 4, Pioneer pays $600 for a one-year insurance policy that will expire next year on September
30.
On October 5, Pioneer purchases an estimated 3-month supply of advertising materials on account from
Aero Supply for $2,500.
On October 9, Pioneer hires four employees to begin work on October 15. Each employee is to receive a
weekly salary of $500 for a 5-day work week, payable every 2 weeks—first payment made on October
26.
On October 20, C. R. Byrd withdraws $500 cash for personal use.
On October 26, Pioneer owes employee salaries of $4,000 and pays them in cash (see October 9 event).
On October 31, Pioneer receives $10,000 in cash from Copa Company for advertising services performed
in October.
Rent Expense
900
900
T-account: lấy tổng tăng trừ tổng giảm
A trial balance is a list of accounts and their balances at a given time
A trial balance is useful in the preparation of financial statements.
The trial balance does not prove that the company has recorded all transactions or that the ledger is
correct.
Cash decrease $7,000
Equipment increase $7,000
NOTE: Ghi nhận debit trước và credit sau
Instructions
(a) Prepare the complete general journal (including explanations) from which the postings to Cash were
made.
(b) Prepare a trial balance at April 30, 2017.
Instructions
(a) Journalize the September transactions. (Use J1 for the journal page number.)
(b) Open ledger accounts and post the September transactions.
(c) Prepare a trial balance at September 30, 2017.
Equipment 1050
Account Payable 1050
Account Payable 1050
Cash
1050
Instructions : Journalize the March transactions.
P2-5A The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr
will be unique in that it will show only triple features of sequential theme movies. As of
March 1, the ledger of Starr showed: Cash $3,000, Land $24,000, Buildings (concession stand, projection
room, ticket booth, and screen) $10,000, Equipment $10,000, Accounts Payable $7,000, and Owner’s
Capital $40,000. During the month of March, the following events and transactions occurred.
In addition to the accounts identifi ed above, the chart of accounts includes: Accounts Receivable,
Service Revenue, Rent Revenue, Advertising Expense, Salaries and Wages Expense, and Rent Expense.
Instructions
(a) Enter the beginning balances in the ledger. Insert a check mark (✓) in the reference column of the
ledger for the beginning balance.
(b) Journalize the March transactions. Starr records admission revenue as service revenue, rental of the
concession stand as rent revenue, and fi lm rental expense as rent expense.
(c) Post the March journal entries to the ledger. Assume that all entries are posted from page 1 of the
journal.
(d) Prepare a trial balance on March 31, 2017.
