Question

MONROE COLLEGE In March, Abby's Employment Agency had the following transactions: 20XX March 1 Abby Todd invested $5,000 in the new employment agency. 4 Bought equipment for cash $200. 5 Earned employment fee for $200, but payment from Blue Co. will not be received until June. 6 Paid wages expenses of $300. 7 Abby Todd paid her home utility bill from the company checkbook, $74. 9 Placed Rick Wool at VCR Corporation, receiving $1,200 cash. 15 Paid cash for supplies, $200. 28 Telephone bill received but not paid, $180. 29 Advertising bill received but not paid, $400. The Chart of Accounts includes: Cash 111, Accounts Receivable 112, Supplies 131, Equipment 141 Accounts Payable 211 A. Todd Capital 311, A. Todd Withdrawal 321, Employment Fees Earned 411, Wages Expense 511, Telephone Expense 521, Advertising Expense 531. Instructions: (Click on tabs below for different accounting records.) Your task is to: 1) Journalize. Record the transactions in the General Journal in date order. 2) Set up T-accounts in a ledger (already done).. 3) Record transactions amounts in the individual T-accounts ( Place the date of the transaction next to the entry. DR column entries, put date on left - CR column entries, put date on right). 3) Foot the T-accounts where appropriate and get the net balance for each account. 4) Prepare a Trial Balance and ensure that Total debits = Total credits. Note re: Excel spreadsheet: General Journal Input dates in date column as labels and input transaction amounts in DR/CR columns as numeric values General ledger T Accounts Input the dollar amounts as numeric values and input formulas to calculate column totals. Enter dates in the columns to the right and left of the entries in the T accounts. Trial Balance Input net balances from the T accounts in to Trial Balance as numeric values and use a formula to get the total DR's and total CR's

Answer 1

1.

Date	General Journal	Debit	Credit
Mar. 1	Cash	5000
	Todd capital		5000
	(To record capital invested)
Mar. 4	Equipment	200
	Cash		200
	(To record equipment purchased)
Mar. 5	Accounts receivable	200
	Employment fees earned		200
	(To record employment fees earned on account)
Jun. 6	Wages expense	300
	Cash		300
	(To record wages paid)
Jun. 7	Todd withdrawal	74
	Cash		74
	(To record drawings)
Jun. 9	Cash	1200
	Employment fees earned		1200
	(To record employment fees earned on account)
Jun. 15	Supplies	200
	Cash		200
	(To record supplies purchased)
Jun. 28	Telephone expense	180
	Accounts payable		180
	(To record telephone bill payable)
Jun. 29	Advertising expense	400
	Accounts payable		400
	(To record advertising bill payable)

2. and 3.

Cash					Accounts Receivable
Mar. 1	5000	200	Mar. 4		Mar. 5	200
Jun. 9	1200	300	Jun. 6
		74	Jun. 7
		200	Jun. 15
End. Bal.	5426				End. Bal.	200
Supplies					Equipment
Jun. 15	200				Mar. 4	200
End. Bal.	200				End. Bal.	200
Accounts Payable					Todd Capital
		180	Jun. 28				5000	Mar. 1
		400	Jun. 29
		580	End. Bal.				5000	End. Bal.
Todd Withdrawal					Employment Fees Earned
Jun. 7	74						200	Mar. 5
							1200	Jun. 9
End. Bal.	74						1400	End. Bal.
Wages Expense					Telephone Expense
Jun. 6	300				Jun. 28	180
End. Bal.	300				End. Bal.	180
Advertising Expense
Jun. 29	400
End. Bal.	400

4.

Abby's Employment Agency
Trial Balance
Account Title	Debit	Credit
Cash	5426
Accounts receivable	200
Supplies	200
Equipment	200
Accounts payable		580
Todd capital		5000
Todd withdrawal	74
Employment fees earned		1400
Wages expense	300
Telephone expense	180
Advertising expense	400
Totals $	6980	6980