Question

Please create trial balance & Income statement.

JOURNAL ENTRIES

Date                            Account Title and Explaination                     Debit                        Credit

Jan 2                Cash                                                                                $40,000

                        Computer Equipment                                                 $10,000

                        A. Smith, Capital                                                                                $50,000

(To record Cash and Computer Equip brought

                        into business)

Jan 2                Rent Expense                                                              $1,800

                        Cash                                                                                                    $1,800

                        (To record Rent Expenses Paid)

Jan 3                Office Supplies                                                           $1,000

                        Accounts payable                                                                               $1,000

                        (To record Purchase of office supplies)

Jan 10              Prepaid Insurance                                                       $3,600

                        Cash                                                                                                    $3,600

                        (To record Insurance Premium paid for 12 months)

Jan 20              Cash                                                                            $6,000

                        Commission Earned                                                                           $6,000

                        (To record Cash received from customers for service

                        Provided)

Jan 24              Salaries Expense                                                         $1,600

                        Cash                                                                                                    $1,600

                        (To record Salaries expenses paid)

Jan 25              Repairs Expenses                                                        $450

                        Cash                                                                                                    $450

                        (To record repair charges paid)

Jan 30              Telephone Expense                                                    $650

                        Telephone Expense Payable                                                              $650

                        (To record accrued telephone expenses)

Jan 31              A. Smith, Withdrawals                                               $1500

                        Cash                                                                                                    $1500

                        (To record cash withdrawn)                          

                                                           

Answer 1