RECORDING TRANSACTIONS

Transcription

1 RECORDING TRANSACTIONS Instructions: 1. Use page 1 of the general journal. Journalize the following transactions completed during September of the current year. September 1 September 2 No. 1. Received cash from the owner, Rico Sanchez, $2, R1. No. 2. No. 3. Paid monthly rental fee on turntables and other equipment, $ C.1. (The business records al rentals in the Rental Expense account when the payment is made.) Paid cash for new music, $ C2. ( At the time of purchase, the business records the purchase costs of all music and equipment in the Supplies--- --Music & Equipment account.) September 3 No. 4. Paid cash for business insurance, $ C3. (The business records all insurance costs in the Prepaid Insurance account when the payment is made.) September 4 September 5 September 6 September 7 September 8 No. 5. Paid cash to establish a petty cash fund, $ C4. No. 6. Bought office supplies on account from Office &Home, Inc., $ M1. (The business records the cost of all office supplies in the Supplies----Office account at the time of purchase.) No. 7. Paid cash for van rental for the month, $ C5. No. 8. Paid cash for office rental for the month, $ C6. No.9. Sold DJ service on account to JJ s Dance Club, $ S1. No. 10. Sold DJ service for a private party and received cash, $ R2. No. 11. Paid cash for advertising in the local paper, $ C7. No. 12. Sold DJ service for a private party and received cash, $ R3.

2 September 9 No. 13. Paid cash on account to Office &Home, Inc., $ C8. No. 14. Paid cash to owner for personal use, $ C9. September 10 No. 15. Sold DJ service for the high school Fall mixer; received $ R4. September 11 No. 16. Paid cash for miscellaneous expense, $ C10. No. 17. Paid cash for repair of equipment, $ C11. September 12 No. 18. Sold DJ service on account to JJ s Dance Club, $ S2. 2. Post from the general journal to the general ledger. When the first page of the general ledger account for Cash is full, forward the balance of the cash account to the second page using the following steps. a. Write the current year and Sept. 12 in the Date column. (The account title, Cash, and number, 110, have already been recorded in the heading of this page.) b. Write the word Balance in the Item column. c. Place a check mark in the Post. Ref. column to indicate that this entry is forwarded from a previous page rather than posted from the general journal. d. Write the debit balance amount in the Balance Debit column. e. Follow this procedure whenever it is necessary to open a new page for a general ledger account. 3. Prepare a report using information from the general ledger. The report is provided on the first page of the packet of printed forms. Give the report to your instructor. 4. Use page 2 of the general journal. Journalize the following transactions. September 13 No. 19. Bought equipment supplies on account from Electronics Unlimited, $ M2. No. 20. Sold DJ service on account to Funky Club, $ S3. September 14 No. 21. Sold DJ service for a private party; received cash, $ R5.

3 September 15 No. 22. Paid cash for miscellaneous expense, $ C12. No. 23. Received payment due from JJ s Dance Club, $1, R6. No. 24. Sold DJ service for a private party; received cash, $ R7 No. 25. Received payment due from Funky Club, $ R8. September 16 No. 26. Paid cash for miscellaneous expense, $ C13. No. 27. Paid cash for advertising on radio, $ C14. No. 28. Bought new music on account from R&B Music, Inc., $ M3. No. 29. Sold DJ service for a private party; received cash $ R9. September 17 No. 30. Paid cash for van cleaning, $ C15. No. 31. Paid cash for cell phone bill, $ C16. No. 32. Sold karaoke service for charity fundraiser; received cash, $ R10. September 18 No. 34. Paid amount due to Electronics Unlimited, $ C18. No. 35. Paid cash to owner for personal use, $ C19. No. 36. Sold all-day DJ service on account to JJ s Dance Club, $ S4. 5. Post from the general journal to the general ledger. 6. Prepare a report using information from the general ledger. The report is provided on the first page of the packet of printed forms. Give the report to your instructor. 7. Use page 3 of the general journal. Journalize the following transactions. September 19 No. 37. Paid cash for miscellaneous expense, $ C20. No. 38. Sold DJ service on amount to JJ s Dance Club, $ S6. September 21 No. 42. Sold DJ services for the Town Hall Fall Festival; received cash, $ R11.

4 September 22 No. 43. Bought new music on account from R&B Music, Inc., $ M5. No. 44. Sold DJ services to the local country club; received cash, $ R12. September 23 No. 45. Paid cash for cleaning of equipment, $ C22. No. 46. Paid cash to owner for personal use, $ C23. No. 47. Sold DJ services for local college dance; received cash, $ R13. September 24 No. 48. Paid bill for electricity for the month, $ C24. No. 49. Sold DJ service on account to Funky Club, $ S7. September 25 No. 50. Sold DJ service on account to Funky Club for marathon dance contest, $1, S8. September 26 No. 51. Paid cash for insurance on van, $ C25. No. 52. Sold DJ services to a private party; received cash, $ R14. September 27 No. 53. Paid cash for office supplies, $ C26. No. 54. Sold karaoke services to a private party; received cash, $ R Post from the general journal to the general ledger. 9. Prepare a report using information from the general ledger. The report is provided on the first page of the packet of printed forms. Give the report to your instructor.

5 September On September 28, Rico Sanchez, Disc Jockey, received a bank statement dated September 26. The following information is obtained from the bank statement and from the records of the business. Prepare a bank statement reconciliation. Use the form in the packet of printed forms. Bank statement balance as of September 26..$4, Outstanding deposits: September September Outstanding checks: Nos. 21, 23, 24, 25, and 26 Bank Service charge Checkbook balance on Check Stub No. 27 $4, Use page 4 of the general journal. Journalize the following transactions. No. 55. Received bank statement showing September bank service charge, $ M6. No. 56. Sold DJ services to the local country club; received cash, $ R16. September 29 No. 57. Sold karaoke services to a private party; received cash, $ R17. September 30 No. 58. Replenished the petty cash fund, $45.00: miscellaneous expense, $30.00; office supplies, $ C27. No. 59. Paid cash to owner for personal use, $ C28. No. 60. Sold DJ services to a private party; received cash, $ R Post from the general journal to the general ledger. 13. Prove cash. The beginning cash balance on September 1 is zero. The balance on the next unused check stub is $4, Use the form on page 2 of the packet of printed forms. 14. Prepare a report using information from the general ledger. The report is on the back of the cash proof. Give the report to your instructor.

6 END-OF-FISCAL-PERIOD WORK Instructions: 15. Prepare a trial balance on a work sheet. Use a one-month fiscal period ended September 30 of the current year. 16. Analyze the adjustment information on the following page into debit and credit parts. Record the adjustments on the work sheet. Total and rule the Adjustments columns. Adjustment Information, September 30 Office supplies on hand $45.00 Music & equipment supplies on hand Value of prepaid insurance Extend the up-to- date account balances to the Balance Sheet and Income Statement columns. 18. Complete the work sheet. 19. Prepare an income statement. Calculate and record the component percentages for sales, total expenses, and net income. Round percentage calculations to the nearest 0.1%. 20. Calculate the amount of current capital. Prepare a balance sheet. 21. Use page 5 of the journal. Journalize and the adjusting entries. 22. Continue to use page 5 of the journal. Journalize and post the closing entries. 23. Prepare a post-closing trial balance. 24. Complete the Think Like and Accountant activity sheet in your simulation packet. 25. Assemble all forms and records in the following order. Be sure your name is one each sheet. Present your complete simulation to your instructor. Journal General ledger Bank reconciliation Work sheet Income statement Balance sheet Post-closing trial balance Think Like an Accountant Activity Sheet