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Trial Balance and Financial Entries

1) Virgie Litton started a repair business and recorded various business transactions throughout December including obtaining capital from C. Lahis, purchasing tools, equipment, and supplies, paying rent and other expenses, receiving cash from customers, and taking drawings. 2) Various accounts were debited and credited for transactions including cash, accounts receivable, notes receivable, tools, furniture and fixtures, office equipment, accounts payable, notes payable, loans payable, capital, drawings, and various expense and income accounts. 3) A trial balance was prepared at the end of December that listed account balances and ensured total debits equaled total credits.

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Paul Gabriel Fernandez
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316 views14 pages

Trial Balance and Financial Entries

1) Virgie Litton started a repair business and recorded various business transactions throughout December including obtaining capital from C. Lahis, purchasing tools, equipment, and supplies, paying rent and other expenses, receiving cash from customers, and taking drawings. 2) Various accounts were debited and credited for transactions including cash, accounts receivable, notes receivable, tools, furniture and fixtures, office equipment, accounts payable, notes payable, loans payable, capital, drawings, and various expense and income accounts. 3) A trial balance was prepared at the end of December that listed account balances and ensured total debits equaled total credits.

Uploaded by

Paul Gabriel Fernandez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

PROBLEM A (p.

45)

VIRGIE LITTON

Date Particulars Ref Debit Credit

200E
Dec 1 Cash 101 200,000
V. Litton, Capital 301 200,000

1 Rent Expense 501 16,400


Cash 101 16,400

1 Supplies Expense 502 15,500


Cash 101 15,500

1 Office Equipment 105 80,000


Cash 101 40,000
Accounts Payable 201 40,000

2 Furnitures & Fixtures 104 12,500


Cash 101 12,500

2 Cash 101 5,600


Professional Fees 401 5,600

3 Light & Water Expense 503 4,000


Cash 101 4,000

4 Accounts Receivable 102 38,000


Professional Fees 401 38,000

8 Cash 101 20,000


Loan Payable 203 20,000

10 Notes Receivable 103 12,000


Professional Fees 401 12,000

15 Salaries Expense 504 16,500


Cash 101 16,500

15 V. Litton, Drawing 302 10,000


Cash 101 10,000

18 Furnitures & Fixtures 104 15,000


Accounts Payable (Leeman) 201 15,000
20 Office Equipment 105 32,000
Notes Payable 202 32,000

31 Taxes and Licenses 505 3,000


Cash 101 3,000

31 Salaries Expense 504 14,250


Cash 101 14,250

31 Accounts Payable (Leeman) 201 4,000


Cash 101 4,000

31 Cash 101 12,800


Accounts Receivable 102 12,800

101 2 Cash 5,600


101 8 Cash 20,000
101 31 Cash 12,800
101 1 Cash 16,400
101 1 Cash 15,500
101 1 Cash 40,000
101 2 Cash 12,500
101 3 Cash 4,000
101 15 Cash 16,500
101 15 Cash 10,000
101 31 Cash 3,000
101 31 Cash 14,250
101 31 Cash 4,000
101 1 Cash 200,000 -
238,400 136,150 102,250
102 4 Accounts Receivable 38,000
102 31 Accounts Receivable - 12,800
38,000 12,800 25,200

103 10 Notes Receivable 12,000 -


12,000 - 12,000

104 2 Furnitures & Fixtures 12,500


104 18 Furnitures & Fixtures 15,000 -
27,500 - 27,500

105 1 Office Equipment 80,000


105 20 Office Equipment 32,000 -
112,000 - 112,000

201 1 Accounts Payable 40,000


201 18 Accounts Payable (Leeman) 15,000
201 31 Accounts Payable (Leeman) 4,000 -
4,000 55,000 51,000

202 20 Notes Payable - 32,000


- 32,000 32,000

203 8 Loan Payable - 20,000


- 20,000 20,000

301 1 V. Litton, Capital - 200,000


- 200,000 200,000

302 15 V. Litton, Drawing 10,000 -


10,000 - 10,000

401 2 Professional Fees 5,600


401 4 Professional Fees 38,000
401 10 Professional Fees - 12,000
- 55,600 55,600
501 1 Rent Expense 16,400 -
16,400 - 16,400

502 1 Supplies Expense 15,500 -


15,500 - 15,500

503 3 Light & Water Expense 4,000 -


4,000 - 4,000

504 15 Salaries Expense 16,500


504 31 Salaries Expense 14,250 -
30,750 - 30,750

505 31 Taxes and Licenses 3,000 -


3,000 - 3,000

Trial Balance Debit Credit


Cash 102,250
Accounts Receivable 25,200
Notes Receivable 12,000
Furnitures & Fixtures 27,500
Office Equipment 112,000
Accounts Payable 51,000
Notes Payable 32,000
Loan Payable 20,000
V. Litton, Capital 200,000
V. Litton, Drawing 10,000
Professional Fees 55,600
Rent Expense 16,400
Supplies Expense 15,500
Light & Water Expense 4,000
Salaries Expense 30,750
Taxes and Licenses 3,000 -
358,600 358,600
-
PROBLEM A (p. 45)

VIRGIE LITTON

Date Particulars Ref Debit Credit

200E
Dec 1 Cash 110 150,000
Tools 113 40,000
C. Lahis, Capital 360 190,000

1 Rent Expense 580 12,000


Cash 110 12,000

1 Repair Supplies Expense 581 6,000


Cash 110 6,000

1 Furnitures & Fixtures 114 16,000


Cash 110 16,000

1 Advertising Expense 582 15,000


Cash 110 15,000

1 Insurance Expense 583 6,000


Cash 110 6,000

1 Repair Equipment 116 29,350


Accounts Payable 251 29,350

6 Cash 110 48,950


Repair Income 470 48,950

7 Furnitures & fixtures 114 8,400


Notes Payable 250 8,400

7 Note Receivable 111 2,000


Repair Income 470 2,000

8 Accounts Receivable 112 36,500


Repair Income 470 36,500

9 Office Supplies Expense 584 3,120


Accounts Payable 251 3,120

10 Cash 110 300,000


Loans Payable 252 300,000
11 C. Lahis Drawing 361 12,000
Cash 110 12,000

13 Light & Water Expense 585 2,500


Cash 110 2,500

15 Salaries Expense 587 16,000


Cash 110 16,000

18 C. Lahis Drawing 361 2,000


Tools 113 2,000

19 Cash 110 36,500


Accounts Receivable 112 36,500

20 Accounts Receivable 112 28,400


Repair Income 470 28,400

21 Office Equipment 115 21,000


Accounts Payable 251 21,000

23 Cash 110 8,400


Accounts Receivable 112 8,400

24 Cash 110 22,500


Repair Income 470 22,500

26 Accounts Receivable 112 12,600


Repair Income 470 12,600

27 Cash 110 2,028


Notes Receivable 111 2,000
Interest Income 471 28

27 Taxes and Licenses Expense 586 4,850


Cash 110 4,850

31 Cash 110 6,300


Accounts Receivable 112 6,300

31 Salaries Expense 587 8,000


Cash 110 8,000

31 Notes Receivable 111 2,000


Accounts Receivable 112 2,000

31 Accounts Payable 251 29,350


Notes Payable 250 29,350

31 Loans Payable 252 100,000


Interest Expense 588 12,000
Cash 112,000

1 Cash 110 150,000


1 Cash 110 12,000
1 Cash 110 6,000
1 Cash 110 16,000
1 Cash 110 15,000
1 Cash 110 6,000
6 Cash 110 48,950
10 Cash 110 300,000
11 Cash 110 12,000
13 Cash 110 2,500
15 Cash 110 16,000
19 Cash 110 36,500
23 Cash 110 8,400
24 Cash 110 22,500
27 Cash 110 2,028
27 Cash 110 4,850
31 Cash 110 6,300
31 Cash 112,000
31 Cash 110 - 8,000
574,678 210,350 364,328 (364,328)
7 Note Receivable 111 2,000
31 Notes Receivable 111 2,000
27 Notes Receivable 111 - 2,000
4,000 2,000 2,000 (2,000)

19 Accounts Receivable 112 36,500


20 Accounts Receivable 112 28,400
23 Accounts Receivable 112 8,400
26 Accounts Receivable 112 12,600
8 Accounts Receivable 112 36,500
31 Accounts Receivable 112 6,300
31 Accounts Receivable 112 - 2,000
77,500 53,200 24,300 (24,300)

1 Tools 113 40,000


18 Tools 113 - 2,000
40,000 2,000 38,000 (38,000)

1 Furnitures & Fixtures 114 16,000


7 Furnitures & fixtures 114 8,400 -
24,400 - 24,400 (24,400)

21 Office Equipment 115 21,000 -


21,000 - 21,000 (21,000)

1 Repair Equipment 116 29,350 -


29,350 - 29,350 (29,350)

7 Notes Payable 250 8,400


31 Notes Payable 251 - 29,350
- 37,750 (37,750) 37,750

31 Accounts Payable 251 29,350


1 Accounts Payable 251 29,350
9 Accounts Payable 251 3,120
21 Accounts Payable 251 - 21,000
29,350 53,470 (24,120) 24,120

10 Loans Payable 252 300,000


31 Loans Payable 252 100,000 -
100,000 300,000 (200,000) 200,000

1 C. Lahis, Capital 360 - 190,000


- 190,000 (190,000) 190,000
11 C. Lahis Drawing 361 12,000
18 C. Lahis Drawing 361 2,000 -
14,000 - 14,000 (14,000)

6 Repair Income 470 48,950


7 Repair Income 470 2,000
8 Repair Income 470 36,500
20 Repair Income 470 28,400
24 Repair Income 470 22,500
26 Repair Income 470 - 12,600
- 150,950 (150,950) 150,950

27 Interest Income 471 - 28


- 28 (28) 28

1 Rent Expense 580 12,000 -


12,000 - 12,000 (12,000)

1 Repair Supplies Expense 581 6,000 -


6,000 - 6,000 (6,000)

1 Advertising Expense 582 15,000 -


15,000 - 15,000 (15,000)

1 Insurance Expense 583 6,000 -


6,000 - 6,000 (6,000)

9 Office Supplies Expense 584 3,120 -


3,120 - 3,120 (3,120)

13 Light & Water Expense 585 2,500 -


2,500 - 2,500 (2,500)

27 Taxes and Licenses Expense 586 4,850 -


4,850 - 4,850 (4,850)

15 Salaries Expense 587 16,000


31 Salaries Expense 587 8,000 -
24,000 - 24,000 (24,000)

31 Interest Expense 588 12,000 -


12,000 - 12,000 (12,000)

1,999,496 1,999,496 - -
TRIAL BALANCE

Cash 110 364,328


Notes Receivable 111 2,000
Accounts Receivable 112 24,300
Tools 113 38,000
Furnitures & fixtures 114 24,400
Office Equipment 115 21,000
Repair Equipment 116 29,350
Notes Payable 251 37,750
Accounts Payable 251 24,120
Loans Payable 252 200,000
C. Lahis, Capital 360 190,000
C. Lahis Drawing 361 14,000
Repair Income 470 150,950
Interest Income 471 28
Rent Expense 580 12,000
Repair Supplies Expense 581 6,000
Advertising Expense 582 15,000
Insurance Expense 583 6,000
Office Supplies Expense 584 3,120
Light & Water Expense 585 2,500
Taxes and Licenses Expense 586 4,850
Salaries Expense 587 24,000
Interest Expense 588 12,000 -

Total 602,848 602,848 - -

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