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Series B Problems
P 4-9B
Journalizing and Posting Transactions
(LO4 - Journalize transactions./5 - Post to the general
ledger and prepare a trial balance.) Benito Mendez
opened Mendez Appraisals. He rented office space and
has a part-time secretary to answer the phone and make
appraisal appointments. His chart of accounts is as follows:
Chart of Accounts
Assets
101
Cash
122
Accounts Receivable
142
Office Supplies
181
Office Equipment
Liabilities
202
Accounts Payable
Owner's Equity
311
Benito Mendez, Capital
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Owner's Equity
312
Benito Mendez,
Drawing
Revenues
401
Appraisal Fees
Expenses
511
Wages Expense
512
Advertising Expense
521
Rent Expense
525
Phone Expense
526
Transportation
Expense
533
Electricity Expense
549
Miscellaneous
Expense
Mendez's transactions for the first month of business are as follows:
May 1
Mendez invested cash in the business,
$5,000.
2
Paid rent, $500.
3
Purchased office supplies, $100.
4
Purchased office equipment on account,
$2,000.
5
Received cash for services rendered,
$280.
8
Paid phone bill, $38.
9
Paid electric bill, $42.
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10
Received cash for services rendered,
$310.
13
Paid part-time employee, $500.
14
Paid car rental for out-of-town trip, $200.
15
Paid for newspaper ad, $30.
18
Received cash for services rendered,
$620.
19
Paid mileage reimbursement for part-time
employee's use of personal car for
business deliveries (transportation
expense), $22.
21
Mendez withdrew cash for personal use,
$50.
23
Made payment on account for office
equipment purchased earlier, $200.
24
Earned appraisal fee, which will be paid in
a week, $500.
26
Paid for newspaper ad, $30.
27
Paid for local softball team sponsorship
(miscellaneous expense), $15.
28
Paid part-time employee, $500.
29
Received cash on account, $250.
30
Received cash for services rendered,
$280.
31
Paid cab fare (transportation expense),
$13.
Required
1. Set up general ledger accounts from the chart of accounts.
2. Journalize the transactions for May in a two-column general journal. Use the
following journal page numbers: May 1–10, page 1; May 13–24, page 2; May
26–31, page 3.
3. Post the transactions to the general ledger.
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4. Prepare a trial balance.
5. Prepare an income statement and a statement of owner's equity for the month
of May, and a balance sheet as of May 31, 20–.
P 4-10B
Journalizing and Posting Transactions
(LO4 - Journalize transactions./5 - Post to the general
ledger and prepare a trial balance.) Ann Taylor owns a
suit tailoring shop. She opened business in September.
She rented a small work space and has an assistant to receive job orders and
process claim tickets. Her trial balance shows her account balances for the
first two months of business.
Taylor's transactions for November are as follows:
Nov. 1
2
Paid rent, $300.
Purchased tailoring supplies on account,
$150.
3
Purchased a new button hole machine on
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account, $300.
5
Earned first week's revenue, $400: $100 in
cash and $300 on account.
8
Paid for newspaper advertising, $13.
9
Paid phone bill, $28.
10
Paid electric bill, $21.
11
Received cash on account from customers,
$200.
12
Earned second week's revenue, $450:
$200 in cash and $250 on account.
15
Paid assistant, $400.
16
Made payment on account, $100.
17
Paid for magazine subscription
(miscellaneous expense), $12.
19
Earned third week's revenue, $450: $300 in
cash, $150 on account.
23
Received cash on account from customers,
$300.
24
Paid for newspaper advertising, $13.
26
Paid for postage (miscellaneous expense),
$12.
27
Earned fourth week's revenue, $600: $200
in cash and $400 on account.
30
Received cash on account from customers,
$400.
Required
1. Set up general ledger accounts by entering the balances as of November 1,
20–.
2. Journalize the transactions for November in a two-column general journal.
Use the following journal page numbers: November 1–11, page 7; November
12–24, page 8; November 26–30, page 9.
3. Post the entries to the general ledger.
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