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Quiz Solution

The document summarizes journal entries and transactions for Eudora Transportation for April. It provides the journal entries, posts the transactions to T-accounts to create a general ledger, and prepares an unadjusted trial balance from the general ledger balances. Key transactions include Eudora receiving $500,000 capital, purchasing transportation equipment for $250,000, generating $91,000 in service revenue, and incurring various expenses.

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Kim Patrick Victoria
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390 views

Quiz Solution

The document summarizes journal entries and transactions for Eudora Transportation for April. It provides the journal entries, posts the transactions to T-accounts to create a general ledger, and prepares an unadjusted trial balance from the general ledger balances. Key transactions include Eudora receiving $500,000 capital, purchasing transportation equipment for $250,000, generating $91,000 in service revenue, and incurring various expenses.

Uploaded by

Kim Patrick Victoria
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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SOLUTION: a.

Journalize the transactions

Date Account Title & Explanation Ref Debit Credit

1-Apr Cash 500,000

Eudora, Capital 500,000

Transportation Equipment 250,000

Cash 125,000

Accounts Payable 125,000

Rental Expense 5,000

Cash 5,000

5-Apr Cash 8,000

Service Revenue 8,000

8-Apr Accounts Receivable 30,000

Service Revenue 30,000

10-Apr Salaries Expense 10,000

Cash 10,000

15-Apr Cash 20,000

Accounts Receivable 15,000

Service Revenue 35,000

18-Apr Utilities Expense 2,000

Cash 2,000

20-Apr Cash 15,000

Accounts Receivable 15,000

25-Apr Supplies Expense 2,300

Cash 2,300
Date Account Title & Explanation Ref Debit Credit

29-Apr Cash 18,000

Service Revenue 18,000

b. Post to general ledger using T-account format

CASH ACCOUNTS RECEIVABLE TRANSPORTATION EQUIPMENT

500,000 125,000 30,000 15,000 250,000

8,000 5,000 15,000 250,000

20,000 10,000 45,000 15,000

15,000 2,000 30,000

18,000 2,300

561,000 144,300

416,700

ACCOUNTS PAYABLE EUDORA, CAPITAL SERVICE REVENUE

125,000 500,000 8,000

125,000 500,000 30,000

35,000

18,000

91,000

RENTAL EXPENSE SALARIES EXPENSE UTILITIES EXPENSE

5,000 10,000 2,000

5,000 10,000 2,000

109
SUPPLIES EXPENSE

2,300

2,300

A. Prepare unadjusted trial balance

Account Title Debit Credit

Cash 416,700

Accounts Receivable 30,000

Transportation Eqpt 250,000

Accounts Payable 125,000

Eudora, Capital 500,000

Service Revenue 91,000

Rental Expense 5,000

Salaries Expense 10,000

Utilities Expense 2,000

Supplies Expense 2,300

TOTAL 716,000 716,000

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