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To Record The Purchase of Equipment

1. The general journal records transactions for an entity from January 1 to December 31, 2020. Transactions include investing cash in the business, obtaining a bank loan, purchasing equipment and supplies, providing and collecting for services, paying expenses, and withdrawing cash. 2. The general ledger shows account balances and transactions for assets, liabilities, equity, income and expenses. 3. The unadjusted trial balance totals debits and credits but does not include adjusting entries for accrued interest, depreciation, or bad debts.

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Shane Nayah
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1K views

To Record The Purchase of Equipment

1. The general journal records transactions for an entity from January 1 to December 31, 2020. Transactions include investing cash in the business, obtaining a bank loan, purchasing equipment and supplies, providing and collecting for services, paying expenses, and withdrawing cash. 2. The general ledger shows account balances and transactions for assets, liabilities, equity, income and expenses. 3. The unadjusted trial balance totals debits and credits but does not include adjusting entries for accrued interest, depreciation, or bad debts.

Uploaded by

Shane Nayah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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General Journal

Date Account Titles & Explanation Debit Credit

1 Cash 200,000
Owner’s Equity 200,000
To record the investment to the business
2 Cash 300,000
Notes Payable 300,000
To record the bank loan
3 Equipment 360,000
Cash 360,000
To record the purchase of equipment
4 Supplies 80,000
Cash 80,000
To record the purchase of supplies
5 Cash 180,000
Service Fees 180,000
To record the rendered service for cash
6 Accounts Receivable 420,000
Service Fees 420,000
To record the rendered service on account
7 Cash 370,000
Accounts Receivable 370,000
To record the collection of accounts receivable
8 Utilities Expense 16,000
Cash 16,000
To record the utilities expense
9 Salaries Expense 140,000
Cash 140,000
To record salaries expense
10 Owner’s Drawing 100,000
Cash 100,000
To record the withdrew of cash

General Ledger

ASSET

Cash Accounts Receivable

No. Debit No. Credit No. Debit No. Credit


1 200,000 3 360,000 6 420,000 7 370,000
2 300,000 4 80,000
5 180,000 8 16,000
7 370,000 9 140,000
10 100,000
Bal. P354,000 Bal. P50,000

Equipment Supplies

No. Debit No. Credit No. Debit No. Credit

3 360,000 4 80,000

Bal. P360,000 Bal. P80,000

LIABILITY

Notes Payable

No. Debit No. Credit

2 300,000

Bal. P300,000

EQUITY

Owner’s Equity Owner’s Drawing

No. Debit No. Credit No. Debit No. Credit

1 200,000 10 100,000

Bal. P200,000 Bal. P100,000

INCOME

Service Fees
No. Debit No. Credit

5 180,000
6 420,000
Bal. P600,000

EXPENSE

Salaries Expense Utilities Expense

No. Debit No. Credit No. Debit No. Credit

9 140,000 8 16,000

Bal. P140,000 Bal. P16,000

Entity A
Unadjusted Trial Balance
For the year ended, December 31, 2020

Accounts Debit Credit

Cash 354,000
Accounts Receivable 50,000
Equipment 360,000
Supplies 80,000
Notes Payable 300,000
Owner’s Equity 200,000
Owner’s Drawing 100,000
Service Fees 600,000
Salaries Expense 140,000
Utilities Expense 16,000

TOTALS P1,100,000 P1,100,000

Adjusting Journal Entries

Date Account Titles & Explanation Debit Credit

Dec. 31, Interest Expense 9,000


2020 Interest Payable 9,000
To accrue interest expense incurred but not yet paid
Dec. 31, Depreciation Expense – Equipment 3,000
2020 Accumulated Depreciation 3,000
To record depreciation expense
Dec. 31, Bad Debts Expense 25,200
2020 Allowance for Bad Debts 25,200
To record the bad debts for the period
Dec. Supplies Expense 5,000
31,2020 Supplies 5,000
To record the unused supplies

Entity A
Worksheet
For the Period Ended, December 31, 2020

Unadjusted Trial Adjustments Adjusted Trial


No Accounts Balance Balance
. Dr Cr Dr Cr Dr Cr

1 Cash 354,000 354,000


2 Accounts Receivable 50,000 50,000
3 Equipment 360,000 360,000
4 Supplies 80,000 5,000 75,000
5 Notes Payable 300,000 300,000
6 Owner’s Equity 200,000 200,000
7 Owner’s Drawing 100,000 100,000
8 Service Fees 600,000 600,000
9 Salaries Expense 140,000 140,000
10 Utilities Expense 16,000 16,000
TOTALS P1,100,000 P1,100,000

Adjustments
11 Interest Expense 1 9,000 9,000
12 Interest Payable 9,000 9,000
13 Depreciation 2 3,000 3,000
Expense
14 Accumulated 3,000 3,000
Depreciation
15 Bad Debts Expense 3 25,200 25,200
16 Allowance for 25,200 25,200
Bad Debts
17 Supplies Expense 4 5,000 5,000

TOTALS 42,200 42,200 1,137,200 1,137,200

PROBLEM 2

General Journal

Date Account Titles & Explanation Debit Credit

1 Cash 320,000
Owner’s Equity 320,000
To record the investment
2 Cash 200,000
Notes Payable 200,000
To record the bank loan
3 Equipment 240,000
Cash 240,000
To record the purchase of equipment
4 Prepaid Rent 108,000
Cash 108,000
To record the advance payment of rent
5 Cash 260,000
Service Fees 260,000
To record the service rendered for cash
6 Utilities Expense 15,000
Cash 15,000
To record the utilities expense
7 Owner’s Drawing 50,000
Cash 50,000
To record the withdrawal from the business

General Ledger

ASSET

Cash Equipment

No. Debit No. Credit No. Debit No. Credit

1 320,000 3 240,000 3 240,000


2 200,000 4 108,000
5 260,000 6 15,000
7 50,000
Bal. P367,000 Bal. P240,000

Prepaid Rent

No. Debit No. Credit

4 108,000

Bal. P108,000
LIABILITY

Notes Payable

No. Debit No. Credit

2 200,000

Bal. P200,000

EQUITY

Owner’s Equity Owner’s Drawing

No. Debit No. Credit No. Debit No. Credit

1 320,000 7 50,000

Bal. P320,000 Bal. P50,000

INCOME

Service Fees

No. Debit No. Credit

5 260,000

Bal. P260,000

EXPENSE

Utilities Expense

No. Debit No. Credit

6 15,000
Bal. P15,000

Entity B
Unadjusted Trial Balance
For the Year Ended, December 31, 2020

Accounts Debit Credit

Cash 367,000
Equipment 240,000
Prepaid Rent 108,000
Notes Payable 200,000
Owner’s Equity 320,000
Owner’s Drawing 50,000
Service Fees 260,000
Utilities Expense 15,000

TOTALS P780,000 P780,000

Adjusting Journal Entries

Date Account Titles & Explanation Debit Credit

Dec. 31, Salaries Expense 8,000


2020 Salaries Payable 8,000
To accrue salaries expense
Dec. 31, Depreciation Expense - Equipment 5,000
2020 Accumulated Depreciation 5,000
To record depreciation expense
Dec. 31, Interest Expense 2,000
2020 Interest Payable 2,000
To accrue interest expense incurred but not yet paid
Dec. 31, Rent Expense 18,000
2020 Prepaid Rent 18,000
To record the used portion of prepaid rent
Entity B
Worksheet
For the Period Ended, December 31, 2020

Unadjusted Trial Adjustments Adjusted Trial


No Accounts Balance Balance
. Dr Cr Dr Cr Dr Cr
1 Cash 367,000 367,000
2 Equipment 240,000 240,000
3 Prepaid Rent 108,000 18,000 90,000
4 Notes Payable 200,000 200,000
5 Owner’s Equity 320,000 320,000
6 Owner’s Drawing 50,000 50,000
7 Service Fees 260,000 260,000
8 Utilities Expense 15,000 15,000
TOTALS P780,000 P780,000

Adjustments
9 Salaries Expense 1 8,000 8,000
10 Salaries Payable 8,000 8,000
11 Depreciation 2 5,000 5,000
Expense
12 Accumulated 5,000 5,000
Depreciation
13 Interest Expense 3 2,000 2,000
14 Interest Payable 2,000 2,000
15 Rent Expense 4 18,000 18,000

TOTALS P33,000 P33,000 P795,000 P795,000

PROBLEM 3

General Journal

Date Account Titles & Explanation Debit Credit


1 Cash 100,000
Owner’s Equity 100,000
To record the investment to the business
2 Supplies Expense 60,000
Cash 60,000
To record the purchase of supplies
3 Accounts Receivable 400,000
Cash 400,000
To record service fees on account
4 Cash 270,000
Accounts Receivable 270,000
To record the collection of accounts receivables
5 Owner’s Drawing 60,000
Cash 60,000
To record the owner’s withdrawal
6 Salaries Expense 180,000
Cash 180,000
To record salaries expense

General Ledger

ASSET

Cash Accounts Receivable


No. Debit No. Credit No. Debit No. Credit

1 100,000 2 60,000 3 400,000 4 270,000


4 270,000 5 60,000
6 180,000

Bal. P70,000 Bal. P130,000

EQUITY

Owner’s Equity Owner’s Drawing

No. Debit No. Credit No. Debit No. Credit


1 100,000 5 60,000

Bal. P100,000 Bal. P60,000

INCOME

Service Fees

No. Debit No. Credit

3 400,000

Bal. P400,000

EXPENSE

Salaries Expense Supplies Expense

No. Debit No. Credit No. Debit No. Credit

6 180,000 2 60,000

Bal. P180,000 Bal. P60,000

Guitar Doc.
Unadjusted Trial Balance
For the Year Ended, December 31, 2020

Accounts Debit Credit


Cash 70,000
Accounts Receivable 130,000
Owner’s Equity 100,000
Owner’s Drawing 60,000
Service Fees 400,000
Salaries Expense 180,000
Supplies Expense 60,000

TOTALS P500,000 P500,000

Adjusting Journal Entries

Date Account Titles & Explanation Debit Credit

Dec. 31, Bad Debts Expense 10,000


2020 Allowance for Bad Debts 10,000
To record the bad debts expense for the period
Dec. 31, Supplies 20,000
2020 Supplies Expense 20,000
To record the unused supplies for the period
Dec. 31, Salaries Expense 30,000
2020 Salaries Payable 30,000
To accrue salaries expense
Guitar Doc.
Worksheet
For the Period Ended, December 31, 2020

Unadjusted Trial Adjustments Adjusted Trial


No Accounts Balance Balance
. Dr Cr Dr Cr Dr Cr

1 Cash 70,000 70,000


2 Accounts 130,000 130,000
Receivable
3 Owner’s Equity 100,000 100,000
4 Owner’s Drawing 60,000 60,000
5 Service Fees 400,000 400,000
6 Salaries Expense 180,000 30,000 210,000
7 Supplies Expense 60,000 20,000 40,000
TOTALS P500,000 P500,000

Adjustments
8 Bad Debts 1 10,000 10,000
Expense
9 Allowance for 10,000 10,000
Bad Debts
10 Supplies 2 20,000 20,000
11 Salaries Payable 30,000 30,000

TOTALS P60,000 P60,000 P540,000 P540,000

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