For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during july July 1. The following assets were received from Jolene Upton: Cash, $19,000; Accounts Receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. Paid three months rent on a lease rental contract, $6,000 Paid the premiums on property and casualty insurance policies, $4,500 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. Purchased additional office equipment on account from Office Necessities Co., $5,100. Received cash from clients on account, $12,750. Paid cash for a newspaper advertisement, $500. Paid office Necessities Co. for part of the debt incurred on July 5, $3,000 Provided services on account for the period July 1-12, $14,200 Paid receptionist for two weeks salary, $1,500. Received cash from cash clients for fees earned during the period July 1-17, $10,400. Paid cash for supplies, $1,000. Provided services on account or the period July 12-20, $9,000. Received cash from clients for fees earned for the period July 17-24, $8,500 Received cash from clients on account, $12,000. Paid receptionist for two weeks salary, $1,500. Paid telephone bill for July, $325. Paid electricity bill for July, $675. Received cash from cash clients for fees earned for the period July 25-31, $7,100. Provided services on account for the remainder of July, $5,500. Jolene withdrew $20,000 for personal use. INSTRUCTIONS; Journalize each transaction in a two column journal utilizing the following chart of accounts. 11 – Cash 31 – John Upton, Capital 12 – Accounts Receivable 32 – John Upton, Drawing 14 – Supplies 41 – Fees Earned 15 – Prepaid Rent 51 – Salary Expense 16 – Prepaid Insurance 52 – Rent Expense 18 – Office Equipment 53 – Supplies Expense 19 – Accumulated Depreciation – Office Equipment 54 – Depreciation Expense 21 – Accounts Payable 55 – Insurance Expense 22 – Salaries Payable 59 – Miscellaneous Expense 23 – Unearned Fees Post the transactions to “T” accounts Prepare an unadjusted trial balance sheet (include header information)
For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during july
July 1. The following assets were received from Jolene Upton: Cash, $19,000; Accounts Receivable,
$22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received.
- Paid three months rent on a lease rental contract, $6,000
- Paid the premiums on property and casualty insurance policies, $4,500
- Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000.
- Purchased additional office equipment on account from Office Necessities Co., $5,100.
- Received cash from clients on account, $12,750.
- Paid cash for a newspaper advertisement, $500.
- Paid office Necessities Co. for part of the debt incurred on July 5, $3,000
- Provided services on account for the period July 1-12, $14,200
- Paid receptionist for two weeks salary, $1,500.
- Received cash from cash clients for fees earned during the period July 1-17, $10,400.
- Paid cash for supplies, $1,000.
- Provided services on account or the period July 12-20, $9,000.
- Received cash from clients for fees earned for the period July 17-24, $8,500
- Received cash from clients on account, $12,000.
- Paid receptionist for two weeks salary, $1,500.
- Paid telephone bill for July, $325.
- Paid electricity bill for July, $675.
- Received cash from cash clients for fees earned for the period July 25-31, $7,100.
- Provided services on account for the remainder of July, $5,500.
- Jolene withdrew $20,000 for personal use.
INSTRUCTIONS;
- Journalize each transaction in a two column journal utilizing the following chart of accounts.
11 – Cash 31 – John Upton, Capital
12 – Accounts Receivable 32 – John Upton, Drawing
14 – Supplies 41 – Fees Earned
15 – Prepaid Rent 51 – Salary Expense
16 – Prepaid Insurance 52 – Rent Expense
18 – Office Equipment 53 – Supplies Expense
19 –
21 – Accounts Payable 55 – Insurance Expense
22 – Salaries Payable 59 – Miscellaneous Expense
23 – Unearned Fees
Post the transactions to “T” accounts- Prepare an unadjusted
trial balance sheet (include header information)
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