Sep. 1 Friedman began a business by investing $50000 in cash, $3000 in supplies and $25000 in
equipment
Sep. 1 Bought supplies for cash, $540
Prepaid the rent for six month, $7200
Sep. 3 Purchased additional supplies on credit, $320
Sep. 5 Prepaid the insurance premium for three month $3000
Sep. 9 Performed services and immediately collected $3200 cash for the work.
Sep. 13 Paid for the supplies purchased on September 3
Sep. 15 Purchased equipment on account $5800
Sep. 16 Performed services for Adam on account $850
Sep. 23 Completed professional work for Vat on credit, $6800
Sep. 26 Received $850 from Adam for the work completed on .
Sep. 28 Friedman withdrew $100 from the business to pay his home utility bill
Sep. 29 Withdrew $2500 for personal use
Sep. 30 Paid the September telephone bill of the office, $380
Sep. 30 Made additional cash investment in the business $2000
Additional information for adjustment at the end of the month:
(a) Rent expense for September $1200
(b) Insurance expense expired $1000
(c) Medical supplies used in November $750
(d) The accumulated depreciation for equipment $ 860
(e) Accrued salary of the receptionist and assistant $2570
(f) Accrued service revenue $3250
Required: Journalize the transactions;
Post the journal entries to the ledger accounts;
Complete the work sheet.
Prepare the financial statements.
Make the journal entry and post them to the ledger.
Close the accounts.
General Journal Page 1
Date Accounts and Explanation . Debit Credit
Step1 investing in cash and $50000 Cash Capital
Step1 investing in supplies $3000 Supplies Capital
Step1 investing in equipment $25000 equipment Capital
Step1 Bought supplies for cash, $540 supplies Cash
Prepaid the rent for six month, $7200 Prepaid rent Cash
Sep. 3 Purchased additional supplies on
credit,
$320 supplies Accounts
Payable
Sep. 5 Prepaid the insurance premium for
three month
$3000 Prepaid
Insurance
Cash
Sep. 9 Performed services and immediately
collected cash for the work
8$3200 cash Service
Revenue
Sep. 13 Paid for the supplies purchased on
Sep 3
$320 Accounts
payable
Cash
Sep. 15 Purchased equipment on account $5800 equipment Accounts
Payable
Sep. 16 Performed services for Adam on
account
$850 Accounts
receivable
Service
Revenue
Sep. 23 Completed professional work for Vat
on credit,
$6800 Accounts
receivable
Service
Revenue
Sep. 26 Received from Adam for the work
completed on .
$850 cash Accounts
Receivable
Sep. 28 Friedman withdrew from the business
to pay his home utility bill
$100 capital Withdrawl
Sep. 29 Withdrew for personal use $2500 capital Withdrawl
Sep. 30 Paid the September telephone bill of
the office,
$380 Utilities
expense
Cash
Sep. 30 Made additional cash investment in
the business
$2000 cash Capital
Adjusting(a) Rent expense for September $1200 Rent expense Prepaid rent
(b) Insurance expense expired $1000 Insurance
Expense
Prepaid
Insurance
(c) Medical supplies used in November $750 Supplies
expense
Supplies
(d) The accumulated depreciation for
equipment
$ 860 Depreciation
Expense
Accumulated
depreciation
(e) (g) Accrued salary of the receptionist
and assistant
$2570 Salaries
expense
Salaries
Payable
(f) Accrued service revenue $3250 Accounts
receivable
Service
Revenue
Clo. (a) 14100 Service
revenue
Retained
earnings
(b) 1200 Retained
Earnings
Rent expense
2570 Retained
Earnings
Salaries
expense
1000 Retained Insurance
Earnings Expense
750 Retained
earnings
Supplies
Expense
860 Retained
earnings
Depreciation
Expense
380 Retained
earnings
Utilities
Expense
(c)
(d)
General Ledger
Cash 11 Capital 31
50000
3200
850
2000
44610
540
7200
3000
320
380
100
2500
50000
3000
25000
2000
77400
Accounts Receivable 12 Withdrawal 32
6800
850
3250
10500
850 100
2500
2600
Supplies 13 Service Revenue 41
3000
540
320
3110
750 3200
850
3250
6800
14100
Equipment 14 Rent Expense 51
25000
5800
30800
1200
1200
Accumulated Depreciation 15 Salaries Expense 52
860
860
2570
2570
Prepaid Rent 16 Insurance Expense 53
7200
6000
1200 1000
1000
Prepaid Insurance 17 Supplies Expense 54
3000
2000
1000 750
750
Accounts Payable 21 Depreciation Expense 54
320 320
5800
5800
860
860
Salaries Payable 22 Utilities Expense 56
2570
2570
380
380
The Income Summary
14100 1200
2570
1000
750
860
380
7340
Work Sheet
Trial Balance Adjustments
Income
Statement
Balance Sheet
Account Title
Debit Credit Debit Credit Debit Credit Debit Credit
Cash 44610 44610
Accounts
Receivable
6800 3250 10050
Prepaid Rent 7200 1200 6000
Prepaid
Insurance
3000 1000 2000
Supplies 3860 750 3110
Equipment 30800 30800
Accumulated 860 860
Depreciation
Accounts
Payable
5800 5800
Salaries
Payable
2570 2570
Capital 77400 77400
Withdrawals 2600 2600
Service
Revenue
10850 3250 14100 14100
Rent Expense 1200 1200 1200
Salaries
Expense
2570 2570 2570
Insurance
Expense
1000 1000 1000
Supplies
Expenses
750 750 750
Depreciation
Expense
860 860 860
Utilities
Expense
380 380 380
Total 96650 96650 9630 9630 6760 14100 103330 103330
Net Income 7340
Friedman
The Income Statement
For the month of September
Revenue:
Service revenue 14100
Expense:
Salary expense 2570
Depreciation expense 860
Rent expense 1200
Insurance expense 1000
Supplies expense 750
Utilities expense 380
net income 7340
Friedman
The Statement of Owner’s Equity
For the month of September
Retained earnings,september1, 0
Add:Net income 7340
Retained earnings,septembe30, 7340
Friedman
The Balance Sheet
November 30
Assets:
Cash
Less withdrawl
44610
(2600)
Accounts receivable 10050
Supplies 3110
Equipment 30800
Prepaid rent 6000
Prepaid insurance 2000
Less Accumulated depreciation (860)
Total Assets: 93110
Liabilities and Owner’s Equity
Accounts payable 5800
Salaries payable 2570
Capital
Retained earnings
77400
7340
Total Liabilities and Capital 93110
