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Unit 2 – Solution to PR2-3A
Journalize Entries Entry 1: Kathleen transferred cash from a personal bank account to an account to be used for the business, $17,000.   Journal Entry Cash				17,000   Kathleen Alvarez, Capital			17,000
Journalize Entries, cont. Entry 2: Paid rent for period of April 2 to end of month, $3,400.   Journal Entry Rent Expense			3,400   Cash					3,400
Journalize Entries, cont. Entry 3: Purchased office equipment on account, $10,000.     Journal Entry Equipment			10,000   Accounts Payable				10,000
Journalize Entries, cont. Entry 4: Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder.   Journal Entry Truck				21,000   Cash						  2,000   Note Payable					19,000
Journalize Entries, cont. Entry 5: Purchased supplies for cash, $1,800  Journal Entry Supplies				1,800   Cash						  1,800
Journalize Entries, cont. Entry 6: Received cash for jobs completed, $13,000.   Journal Entry Cash				13,000   Fees Earned					  13,000
Journalize Entries, cont. Entry 7: Paid annual premiums on property and casualty insurance, $1,800.   Journal Entry Prepaid Insurance		1,800   Cash					  1,800
Journalize Entries, cont. Entry 8: Recorded jobs completed on account and sent invoices to customers, $9,000. Journal Entry Accounts Receivable		9,000   Fees Earned				9,000
Journalize Entries, cont. Entry 9: Received an invoice for truck expenses, to be paid in April, $1,000.   Journal Entry Truck Expense			1,000   Accounts Payable			1,000
Other Comments Continue with remainder of entries Post each transaction to the general ledger under each account Prepare an unadjusted trial balance – a listing of all general ledger accounts with their current total balance Trial Balance accounts are listed/grouped by Account Type in the following order: Assets, Liabilities, Owners Equity, Revenues, Expenses Contact me – etruban@lfcc.edu with questions

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Unit 2 – Solution to PR2-3A

  • 1. Unit 2 – Solution to PR2-3A
  • 2. Journalize Entries Entry 1: Kathleen transferred cash from a personal bank account to an account to be used for the business, $17,000. Journal Entry Cash 17,000 Kathleen Alvarez, Capital 17,000
  • 3. Journalize Entries, cont. Entry 2: Paid rent for period of April 2 to end of month, $3,400. Journal Entry Rent Expense 3,400 Cash 3,400
  • 4. Journalize Entries, cont. Entry 3: Purchased office equipment on account, $10,000. Journal Entry Equipment 10,000 Accounts Payable 10,000
  • 5. Journalize Entries, cont. Entry 4: Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder. Journal Entry Truck 21,000 Cash 2,000 Note Payable 19,000
  • 6. Journalize Entries, cont. Entry 5: Purchased supplies for cash, $1,800 Journal Entry Supplies 1,800 Cash 1,800
  • 7. Journalize Entries, cont. Entry 6: Received cash for jobs completed, $13,000. Journal Entry Cash 13,000 Fees Earned 13,000
  • 8. Journalize Entries, cont. Entry 7: Paid annual premiums on property and casualty insurance, $1,800. Journal Entry Prepaid Insurance 1,800 Cash 1,800
  • 9. Journalize Entries, cont. Entry 8: Recorded jobs completed on account and sent invoices to customers, $9,000. Journal Entry Accounts Receivable 9,000 Fees Earned 9,000
  • 10. Journalize Entries, cont. Entry 9: Received an invoice for truck expenses, to be paid in April, $1,000. Journal Entry Truck Expense 1,000 Accounts Payable 1,000
  • 11. Other Comments Continue with remainder of entries Post each transaction to the general ledger under each account Prepare an unadjusted trial balance – a listing of all general ledger accounts with their current total balance Trial Balance accounts are listed/grouped by Account Type in the following order: Assets, Liabilities, Owners Equity, Revenues, Expenses Contact me – etruban@lfcc.edu with questions