| This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you. | |||||
| Asset Accounts | Liability Accounts | Equity Accounts | |||
| Acct # | Acct # | Acct # | |||
| Cash | 101 | Notes Payable | 201 | Owner’s Capital | 301 |
| Accounts Receivable | 102 | Accounts Payable | 202 | Owner Draws | 302 |
| 103 | Wages Payable | 203 | |||
| Office Furniture | 104 | ||||
| Office Supplies | 105 | ||||
| Accumulated Depreciation (contra asset) | 106 | ||||
| Revenue Accounts | |||||
| Acct # | |||||
| Service Revenue | 401 | ||||
| Expense Accounts | |||||
| Acct # | |||||
| Rent expense | 501 | ||||
| Business License Expense | 502 | ||||
| Insurance Expense | 503 | ||||
| Repairs and Maintenance | 504 | ||||
| Advertising Expense | 506 | ||||
| Wages Expense | 507 | ||||
| Utilities Expense | 508 | ||||
| Depreciation Expense | 509 | ||||
| Cash | |||||
| Baking Supplies | |||||
| Prepaid Rent | |||||
| Prepaid Insurance | |||||
| Baking Equipment | |||||
| Office Supplies | |||||
| Accounts Receivable | |||||
| Accumulated Depreciation | |||||
| Merchandise Inventory | |||||
| Notes Payable | |||||
| Accounts Payable | |||||
| Wages Payable | |||||
| Interest Payable | |||||
| Common Stock | |||||
| Dividends | |||||
| Bakery Sales | |||||
| Merchandise Sales | |||||
| Baking Supplies Expense | |||||
| Rent Expense | |||||
| Insurance Expense | |||||
| Misc. Expense | |||||
| Business License Expense | |||||
| Advertising Expense | |||||
| Wages Expense | |||||
| Telephone Expense | |||||
| Interest Expense | |||||
| Depreciation Expense | |||||
| Office Supplies Expense | |||||
| Cost of Goods Sold |
| A Company | |||||
| General Journal Entries | Journal Entry Tips | ||||
| The debited account is recorded first, credited account recorded second. | |||||
| Debits and credits must always equal! | |||||
| Date | Accounts | Debit | Credit | There can be compound entries in which two accounts receive a debt to an equivalent credited amount to one account. | |
| Mar 1. | Cash | 125,000.00 | Be sure to use your chart of accounts (the first page of this workbook). | ||
| Notes Payable | 125,000.00 | Each account you will record to is already listed and organized by classification of the account. | |||
| (To record amount borrowed) | |||||
| Mar 1. | License Expense | 250.00 | |||
| Cash | 250.00 | ||||
| (To record license expense paid) | |||||
| Mar 2. | Rent Expense | 950.00 | |||
| Cash | 950.00 | ||||
| (To record rent expense incurred) | |||||
| Mar 5. | Office Furniture | 2,750.00 | |||
| Cash | 15,000.00 | ||||
| Owner’s Capital | 17,750.00 | ||||
| (To record furniture & Cash Contributed) | |||||
| Mar 6. | Cash | 650.00 | |||
| Service Revenue | 650.00 | ||||
| (To record service revenue earned) | |||||
| Mar 8. | Advertising Expense | 500.00 | |||
| Accounts Payable | 500.00 | ||||
| (To record advertising expense incurred) | |||||
| Mar 10. | Accounts Receivable | 1,725.00 | |||
| Service Revenue | 1,725.00 | ||||
| (To record service revenue earned on account) | |||||
| Mar 15. | Insurance | 750.00 | |||
| Cash | 750.00 | ||||
| (To record insurance expense incurred) | |||||
| Mar 20. | Utilities Expense | 135.00 | |||
| Accounts Payable | 135.00 | ||||
| (To record utilities expense incurred) | |||||
| Mar 22. | Owner’s Withdrawal | 500.00 | |||
| Cash | 500.00 | ||||
| (To record amount withdrawn for personal use) | |||||
| Mar 25. | Office Supplies | 215.00 | |||
| Cash | 215.00 | ||||
| (To record supplies purchsed) | |||||
| Mar 25. | Cash | 350.00 | |||
| Service Revenue | 350.00 | ||||
| (To record service revenue earned) | |||||
| Mar 30. | Accounts Payable | 500.00 | |||
| Cash | 500.00 | ||||
| (To record payment made on account) | |||||
| Mar 30. | Cash | 1,725.00 | |||
| Accounts Receivable | 1,725.00 | ||||
| (To record amount received on account) | |||||
| Mar 31. | Salaries Expense | 275.00 | |||
| Salaries Payable | 275.00 | ||||
| (To record salaries expense incurred) | |||||
| Mar 31. | Accounts Receivable | 3,500.00 | |||
| Service Revenue | 3,500.00 | ||||
| (To record service revenue earned on account) | |||||
| Mar 31. | Depreciation | 46.00 | |||
| Accumulated Depreciation – Office Furniture | 46.00 | ||||
| (To record depreciation expense incurred) | |||||
| Total | 154,821.00 | 154,821.00 | If Red, this means your debits and credits do not equal. Be sure to review for errors. |
| Assets | Liabilities | Equity | Revenue | Expenses | ||||||||||||||||||
| Cash | Notes Payable | Owner’s Capital | Service Revenue | Rent Expense | ||||||||||||||||||
| $ 125,000.00 | $ 250.00 | $ 125,000.00 | $ 17,750.00 | $ 650.00 | Mar 6. | Mar 2. | $ 950.00 | |||||||||||||||
| $ 15,000.00 | $ 950.00 | $ 1,725.00 | Mar 25. | |||||||||||||||||||
| $ 650.00 | $ 750.00 | $ 350.00 | Mar 25. | |||||||||||||||||||
| $ 350.00 | $ 500.00 | $ 3,500.00 | Mar 31. | |||||||||||||||||||
| $ 1,725.00 | $ 215.00 | |||||||||||||||||||||
| $ 500.00 | ||||||||||||||||||||||
| $ 142,725.00 | $ 3,165.00 | $ – 0 | $ 125,000.00 | $ – 0 | $ 17,750.00 | $ – 0 | $ 6,225.00 | $ 950.00 | $ – 0 | |||||||||||||
| End Bal | $ 139,560.00 | End Bal | $ 125,000.00 | End Bal | $ 17,750.00 | End Bal | $ 6,225.00 | $ 950.00 | ||||||||||||||
| Accounts Rec. | Accounts Payable | Owner Draws | Business License Expense | |||||||||||||||||||
| Mar 10. | $ 1,725.00 | $ 1,725.00 | Mar 30. | Mar 30. | $ 500.00 | $ 500.00 | Mar 8. | Mar 22. | $ 500.00 | Mar 1. | $ 250.00 | |||||||||||
| Mar 31. | $ 3,500.00 | $ 135.00 | Mar 20. | |||||||||||||||||||
| $ 5,225.00 | $ 1,725.00 | $ 500.00 | $ 635.00 | $ 500.00 | $ – 0 | $ 250.00 | $ – 0 | |||||||||||||||
| End Bal. | $ 3,500.00 | $ 135.00 | End Bal | $ 500.00 | $ 250.00 | |||||||||||||||||
| Prepaid Rent | Wages Payable | Insurance Expense | ||||||||||||||||||||
| Mar 2. | $ 950.00 | $ 275.00 | Posting to the ledger/t accounts | Mar 15. | $ 750.00 | |||||||||||||||||
| Don’t overthink it! | ||||||||||||||||||||||
| You are just posting each debit and credit from the journal entries to the account you identified in the entry. | ||||||||||||||||||||||
| These accounts are set to calculate your balances for you. | ||||||||||||||||||||||
| Please be careful not to delete the running totals as those will calculate the ending balance. | ||||||||||||||||||||||
| The ending balance will transfer to the Trial Balance sheet. | ||||||||||||||||||||||
| If you have posted all entries and your trial balance is not in balance (total debits = total credits), | ||||||||||||||||||||||
| $ 950.00 | $ – 0 | $ – 0 | $ 275.00 | this means that there is an error. | $ 750.00 | $ – 0 | ||||||||||||||||
| End Bal | $ 950.00 | End bal | $ 275.00 | $ 750.00 | ||||||||||||||||||
| Office Furniture | Repairs & Maint. | |||||||||||||||||||||
| Mar 5. | $ 2,750.00 | |||||||||||||||||||||
| $ 2,750.00 | $ – 0 | $ – 0 | $ – 0 | |||||||||||||||||||
| End Bal | $ 2,750.00 | $ – 0 | ||||||||||||||||||||
| Office Supplies | Advertising Expense | |||||||||||||||||||||
| Mar 25. | $ 215.00 | $ 500.00 | ||||||||||||||||||||
| $ 215.00 | $ – 0 | $ 500.00 | $ – 0 | |||||||||||||||||||
| End bal | $ 215.00 | $ 500.00 | ||||||||||||||||||||
| Accumulated Depreciation | Wages Expense | |||||||||||||||||||||
| $ 46.00 | Mar 31. | $ 275.00 | ||||||||||||||||||||
| $ – 0 | $ 46.00 | $ 275.00 | $ – 0 | |||||||||||||||||||
| End Bal | $ (46.00) | $ 275.00 | ||||||||||||||||||||
| Utilities Expense | ||||||||||||||||||||||
| $ 135.00 | ||||||||||||||||||||||
| $ 135.00 | $ – 0 | |||||||||||||||||||||
| $ 135.00 | ||||||||||||||||||||||
| Depreciation Expense | ||||||||||||||||||||||
| $ 46.00 | ||||||||||||||||||||||
| $ 46.00 | $ – 0 | |||||||||||||||||||||
| $ 46.00 |
| Trial Balance | ||||
| As of 03/31/20XX | ||||
| Unadjusted trial balance | ||||
| Account | Debit | Credit | Trial Balance | |
| Cash | 139,560.00 | Balances from the t accounts will autofill your trial balance. | ||
| Accounts Receivable | 3,500.00 | If total debits do not equal total credits in the trial balance, you know you have an error. | ||
| Prepaid Rent | These are the balances that will be used to prepare the financial statements. | |||
| Office Furniture | 2,750.00 | Be sure to implement feedback provided by your instructor for this Milestone One submission! | ||
| Office Supplies | 215.00 | |||
| Accumulated Depreciation | 46.00 | |||
| Notes Payable | 125,000.00 | |||
| Accounts Payable | 135.00 | |||
| Wages Payable | 275.00 | |||
| Owner’s Capital | 17,750.00 | |||
| Owner Draws | 500.00 | |||
| Service Revenue | 6,225.00 | |||
| Rent Expense | 950.00 | |||
| Business License Expense | 250.00 | |||
| Depreciation Expense | 46.00 | |||
| Insurance Expense | 750.00 | |||
| Repairs and Maintenance Expense | – 0 | |||
| Advertising Expense | 500.00 | |||
| Wages Expense | 275.00 | |||
| Utilities Expense | 135.00 | |||
| Retained Earnings | ||||
| Total: | 149,431.00 | 149,431.00 | ||
| Debits should equal credits | ||||
| ` |
| A Company | |
| Income Statement | |
| For Month ending 3/31/20XX | |
| Revenues | |
| $ 6,225.00 | |
| Total Revenues | $ 6,225.00 |
| Operating Expenses: | |
| Buwines License | $ 250.00 |
| Advertising Exp | $ 500.00 |
| Insurance Exp | $ 750.00 |
| Maintenance Exp | $ 95.00 |
| Total Operating Expenses: | 1,595.00 |
| Net Income | 4,630.00 |
| Company Name | ||||
| Statement of Owner’s Equity | ||||
| Period Ending 03/31/20XX | ||||
| Beginning Capital on 3/01/20XX | $ – 0 | |||
| Increases to capital | ||||
| Net income/loss: | $ 4,630.00 | |||
| Owner Contributions | $ 17,750.00 | |||
| Subtotal: | $ 22,380.00 | |||
| Decreases to capital | ||||
| Owner Draws | 500 | |||
| Ending Equity as of 03/31/20XX | $ 22,380.00 |
| A Company | ||||||
| Balance Sheet | ||||||
| As of March 31, 20XX | ||||||
| Assets | Liabilities and Owners’ Equity | |||||
| Current Assets: | Current Liabilities: | |||||
| Cash | 138,515.00 | Accounts Payable | 410.00 | |||
| Office Supplies | 215.00 | Total Current Liabilities | 410.00 | |||
| Accounts Receivables | 3,500.00 | Long Term Liabilities: | ||||
| 125,000.00 | ||||||
| Total Current Assets | 142,230.00 | Total Long Term Liabilities: | 125,000.00 | |||
| Total Liabilities: | 125,410.00 | |||||
| Owner’s Equity | ||||||
| Owner’s Capital | 17,250.00 | |||||
| Non-Current Assets: | Add Net Income | 2274 | ||||
| Office Furniture | 2,750.00 | |||||
| Less Depreciation | (45.88) | Total Equity | 19,524.00 | |||
| Total Non Current/Fixed Assets | 2,704.17 | |||||
| Total Assets: | 144,934.17 | Total Liabilities & Equity | 144,934.00 | <== Total Assets on the left should equal Liabilities + Owner’s Equity on the right. |
| A Company | |||
| Closing Entries | |||
| Month ending 03/31/20XX | |||
| Date | Accounts | Debit | Credit |
| 31-Mar | Revenues | 6,225.00 | |
| Income Summary | 6,225.00 | ||
| Close revenues | |||
| 31-Mar | Income Summary | 3,951.00 | |
| Business License | 250.00 | ||
| Advertising Exp | 500.00 | ||
| Insurance Exp | 750.00 | ||
| Maintenance Exop | 95.00 | ||
| Wages Exp | 275.00 | ||
| Dep. Exp | 45.83 | ||
| Utility Exp | 135.00 | ||
| Rent Exp | 1,900.00 | ||
| Close Expenses | |||
| 31-Mar | Owner’s Capital | 2,274.00 | |
| Close Income Summary | 2,274.00 | ||
| 31-Mar | |||
| Close Dividends | |||
| 22,544.00 | 2,355.83 |
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