sample problem chapter 4 recording transactions in the general journal. the transactions listed...
TRANSCRIPT
Sample ProblemSample Problem
Chapter 4Chapter 4
Recording transactions in the general journal.
The transactions listed below took place at Wu Building Cleaning Service during September 2007. This firm cleans commercial buildings for a fee.
INSTRUCTIONSAnalyze and record each transaction in the general journal. Choose the account names from the chart of accounts
shown below. Be sure to number the journal page 1 and to write the year at the top of the Date column.
Analyze:
How many transactions affected expense accounts?
Transaction – Sept. 1Transaction – Sept. 1
Date Description Post. Ref. Debit Credit2007
Sept. 1 Cash 101 25,000 Fred Wu, Capital 301 25,000Start up investment
Transaction – Sept. 5Transaction – Sept. 5
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 1 Cash 101 25,000
Fred Wu, Capital 301 25,000Start Up Investment
5 Cash 101 2,800 Fees Income 401 2,800Payment for services
Transaction – Sept. 6Transaction – Sept. 6
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 1 Cash 101 25,000
Fred Wu, Capital 301 25,000Start Up Investment
5 Cash 101 2,800 Fees Income 401 2,800Payment for services
6 Rent expense 511 1,800 Cash 101 1,800Issued check 1000 - Sep. rent
Transaction – Sept. 7Transaction – Sept. 7
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 1 Cash 101 25,000
Fred Wu, Capital 301 25,000Start Up Investment
5 Cash 101 2,800 Fees Income 401 2,800Payment for services
6 Rent expense 511 1,800 Cash 101 1,800Issued check 1000 - Sep. rent
7 Accounts Receivable 111 3,600 Fees Income 401 3,600Payment for services
Transaction – Sept 9Transaction – Sept 9
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 9 Telephone expense 521 400
Cash 101 400Issued check 1001
Transaction – Sept. 10Transaction – Sept. 10
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 10 Equipment repair exp 502 230
Cash 101 230Issued check 1002
Transaction – Sept. 12Transaction – Sept. 12
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 12 Cash 101 975
Accounts Rec. 111 975Payment from credit clients
Transaction – Sept. 14Transaction – Sept. 14
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 14 Salaries expense 514 9,000
Cash 101 9,000Issued checks 1003-1004
Transaction – Sept. 18Transaction – Sept. 18
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 18 Cleaning supplies exp501 700
Cash 101 700Issued check 1005
Transaction – Sept. 19Transaction – Sept. 19
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 19 Office supplies exp. 503 600
Cash 101 600Issued check 1006
Transaction – Sept. 20Transaction – Sept. 20
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 20 Equipment 141 6,000
Cash 101 2,000 Accounts Payable 202 4,000Invoice 1012; check 1007
Transaction – Sept. 22Transaction – Sept. 22
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 22 Cash 101 4,950
Fees Income 401 4,950Payment for services
Transaction – Sept. 24Transaction – Sept. 24
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 24 Utilities expense 524 425
Cash 101 425Issued check 1008
Transaction – Sept. 26Transaction – Sept. 26
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 26 Accounts Receivable 111 3,600
Fees Income 401 3,600Payment for services
Transaction – Sept. 30Transaction – Sept. 30
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 30 Salaries expense 111 9,000
Cash 101 9,000Issued checks 1009-1010
Transaction – Sept. 30Transaction – Sept. 30
General Journal Page 1Date Description Post. Ref. Debit Credit
2007Sept. 30 Fred Wu, Drawing 302 3,000
Cash 101 3,000Issued check 1011
AnalysisAnalysis
Eight transactions affected expense Eight transactions affected expense accounts: September 6, 9, 10, 14, accounts: September 6, 9, 10, 14, 18, 19, 24,30 (salary expense, not 18, 19, 24,30 (salary expense, not Fred Wu personal expense)Fred Wu personal expense)