R E C Y C L IN G PR O B L E M 3-1
Journalizing transactions and proving and ruling a journal
Adeline Stein owns a service business called Stein Express, which uses the
following accounts:
Cash
Supplies
Prepaid Insurance
Accts. Rec. - M. Bien
Accts. Pay.-Rim Supply
Accts. Pay.-Parks Co.
Adeline Stein, Capital
Adeline Stein, Drawing
Sales
Advertising Expense
Miscellaneous Expense
Rent Expense
Repair Expense
Utilities Expense
Transactions:
Aug. 1. Received cash from owner as an investment, $8,750.00. Rl.
2. Paid cash for supplies, $500.00. Cl.
3. Paid cash for rent. $300.00. C2.
4. Bought supplies on account from Rim Supply, $1,200.00. Ml.
5. Paid cash for electric bill, $250.00. C3.
8. Paid cash on account to Rim Supply, $700.00. C4.
8. Received cash from sales. $425.00. T8.
8. Sold services on account to M. Bien, $125.00. Sl.
9. Paid cash for insurance, $l,900.00. C5.
10. Paid cash for miscellaneous expense, $27.00. C6.
10. Received cash from sales, $297.00. Tl0.
I l. Paid cash for supplies, $770.00. C7.
I l. Received cash from sales, $493.00. Tl I.
12. Received cash from saies. $294.00. Tl2.
15. Paid cash to owner for personal use, $125.00. C8.
15. Received cash from sales. $275.00. TI5
16. Paid cash for repairs, $88.00. C9.
17. Received cash on account from M. Bien, $125.00. R2.
17. Bought supplies on account from Parks Co., $345.00. M2.
17. Received cash from sales, $200,00 T l7.
18. Received cash from sales, $600.00. Tl8.
19. Received cash from sales, $175.00. Tl9
22. Bought supplies on account from Parks Co., $80.00. M3.
22. Received cash from sales. $450.00. T22
23. Paid cash for telephone bill, $50.00. C l0.
23. Sold services on account to M. Bien. $425.00. 52.
24. Paid cash for advertising, $80.00. C1I.
24. Received cash from sales. $250.00. T24.
25. Received cash from sales, $325.00. T25.
26. Paid cash for supplies, $45.00. C12.
26. Received cash from sales. $3I0.00. T26.
29. Received cash on account from M. Bien. $425.00. R3.
30. Paid cash to owner for personal use, $I50.00.
31. Received cash from sales, $450.00. T30.
Instructions:
1. Use page 1 of the journal given in the Recycling Problem
Working Papers. Journalize the transactions for August 1
through August 19 of the current year. Source documents
are abbreviated as follows: check, C; memorandum, M:
receipt, R; sales invoice, S; calculator tape, T.
2. Prove and rule page 1 of the journal. Carry the column totals forward to
page 2 of the journal.
3. Use page 2 of the journal to journalize the transactions for the
remainder of August.
4. Prove page 2 of the journal.
5. Prove cash. The beginning cash balance on August 1 is
zero. The balance on the next unused check stub is
$8,859.00.
6. Rule page 2 of the journal.