Create Journal Entries for the transactions and post them to T Accounts. 1. 1/15
ID: 2419502 • Letter: C
Question
Create Journal Entries for the transactions and post them to T Accounts.
1. 1/15 Monica deposited $10,000 into a business bank account for PBP (Portraits By Porter) to pursue her dream.
2. 1/15 PBP purchased a camera from Good Co. on account for $3000. The useful life is 5 years.
3. 1/24 PBP purchased a computer for $756. The useful life is 3 years.
4. 1/26 PBP purchased a photo printer for $1200. The useful life is 2 years.
5. 1/26 PBP purchased photo supplies for $500.
6. 1/31 PBP received a $300 deposit from Mr. Moy to provide photography services at his wedding on February 4
7. 2/6 PBP delivered photos to Mr. Moy and billed Mr. Moy for the final payment of $200.
8, 2/8 PBP paid $1000 to Good Co.
9. 2/14 PBP provided photo services to Sweet Hearts Anonymous at the Valentines Day dance and received $250.
10. 2/21 PBP was hired to take photos at a sports banquet to be held on March 15th. The price was $1000 plus travel expenses with a down payment of $250.
11. 2/22 PBP purchased photos supplies for $800 from Photo Chemical Company.
12. 2/23 PBP paid $1500 to Good Co.
13. 2/25 PBP received a phone bill for $86
Explanation / Answer
Journal Entries to record the transactions are as shown below:
S.No.
Date
Particulars
L.F
Amount ($)
Amount ($)
1
15-Jan
Bank
10,000
Capital
10,000
(For Capital invested by owner)
2
15-Jan
Camera
3,000
Good Co.
3,000
(For camera purchased)
3
24-Jan
Computer
756
Cash
756
(For computer purchased)
4
26-Jan
Photo printer
1,200
Cash
1,200
(For photo printer purchased)
5
26-Jan
Photo supplies
500
Cash
500
(For purchased photo supplies)
6
31-Jan
Cash
300
Unearned services
300
(For cash received in advance)
7
Feb-06
Cash
200
Unearned Revenue
300
Services Rendered
500
(For services rendered)
8
Feb-08
Good Co.
1,000
Cash
1,000
(For cash received from good co.)
9
Feb-14
Cash
250
Services Rendered
250
(For photo services rendered)
10
Feb-21
Cash
250
Unearned services
250
(For cash received in advance)
11
Feb-22
Photo supplies
800
Cash
800
(For photo supplies purchased)
12
Feb-23
Good Co.
1,500
Cash
1,500
(For cash received from good co.)
13
Feb-25
Telephone expense
86
Cash
86
(For telephone bill received)
T-accounts are prepared as under:
Cash Account
Particulars
Amount
Particulars
Particulars
(1)
10,000
(3)
756
(6)
300
(4)
1,200
(7)
200
(5)
500
(9)
250
(8)
1,000
(10)
250
(11)
800
(12)
1,500
Balance
5,158
(13)
86
Capital Account
Particulars
Amount
Particulars
Particulars
(1)
10,000
Balance
10,000
Camera Account
Particulars
Amount
Particulars
Particulars
(2)
3,000
Balance
3,000
Good Co. Account
Particulars
Amount
Particulars
Particulars
(8)
1,000
(2)
3,000
(12)
1,500
Balance
500
Computer Account
Particulars
Amount
Particulars
Particulars
(3)
756
Balance
756
Photo printer Account
Particulars
Amount
Particulars
Particulars
(4)
1,200
Balance
1,200
Photo supplies Account
Particulars
Amount
Particulars
Particulars
(5)
500
(11)
800
Balance
1,300
Unearned revenue Account
Particulars
Amount
Particulars
Particulars
(7)
300
(6)
300
(10)
250
Balance
250
Services rendered Account
Particulars
Amount
Particulars
Particulars
(7)
500
(9)
250
Balance
750
Telephone expense account
Particulars
Amount
Particulars
Particulars
(13)
86
Balance
86
S.No.
Date
Particulars
L.F
Amount ($)
Amount ($)
1
15-Jan
Bank
10,000
Capital
10,000
(For Capital invested by owner)
2
15-Jan
Camera
3,000
Good Co.
3,000
(For camera purchased)
3
24-Jan
Computer
756
Cash
756
(For computer purchased)
4
26-Jan
Photo printer
1,200
Cash
1,200
(For photo printer purchased)
5
26-Jan
Photo supplies
500
Cash
500
(For purchased photo supplies)
6
31-Jan
Cash
300
Unearned services
300
(For cash received in advance)
7
Feb-06
Cash
200
Unearned Revenue
300
Services Rendered
500
(For services rendered)
8
Feb-08
Good Co.
1,000
Cash
1,000
(For cash received from good co.)
9
Feb-14
Cash
250
Services Rendered
250
(For photo services rendered)
10
Feb-21
Cash
250
Unearned services
250
(For cash received in advance)
11
Feb-22
Photo supplies
800
Cash
800
(For photo supplies purchased)
12
Feb-23
Good Co.
1,500
Cash
1,500
(For cash received from good co.)
13
Feb-25
Telephone expense
86
Cash
86
(For telephone bill received)