JOURNAL ENTRIES

Date Particular Debit Credit

November 1 Cash A/C Dr. $35000

Equipment A/C Dr. $12000
To owner’s capital A/C $47000
(invested cash and equipment in company)

2 NO ENTRY - -
(no entry has passed because no transaction
has taken place)
3 Prepaid rent A/C Dr. $2140
Rent expense A/C Dr. $2140
To cash A/C $4280
(payment of rent for first month has been
made in cash)
4 Insurance premium A/C Dr. $395
To cash A/C($4740/12) $395
(insurance expense for the first month has
been paid in cash)
5 Equipment A/C Dr. $18000
To Note payable A/C $12000
To cash A/C $6000
(equipment purchased for cash and balance
in note payable)
6 Supplies A/C Dr. $1550
To Accounts payable A/C $1550
 (supplies purchased on account)
7 Supplies A/C Dr. $475
To cash A/C $475
(additional supplies purchased in cash)
16 Cash A/C Dr. $990
To service revenue A/C $990
(cash received on completion of services for
customer)
20 Bills Receivable A/C Dr. $4500
To Service revenue A/C $4500
(bill made for completion of services for two
customers)
26 Accounts Payable A/C Dr. $1000
To cash A/C $1000
(payment made for supplies purchased)
27 Telephone Expense A/C Dr. $220
To Accounts payable A/C $220
(telephone expenses has been paid)
27 Cash A/C Dr. $750
To unearned income A/C $750
(cash received in advance for services to be
provided in December)
29 Cash A/C Dr. $2800
To bills receivable A/C $2800
(cash received from customer )

30 Interest A/C Dr. $60

To cash A/C $60
 (interest paid on note payable)
30 Salary A/C Dr. $2825
To cash A/C $2825
(salary paid in cash)
30 Drawings A/C Dr. $700
To cash A/C $700
(owner’s expense for personal use)

30 Drawings A/C Dr. $1150

To cash A/C $1150
(payment made for purchase of new sound
system for personal use)

LEDGER
CASH A/C

Date Particular Amount Dat Particular Amount

e
1 To owner’s capital A/C $35,000 2 By prepaid rent A/C $4280
16 To service revenue A/C $990 4 By Insurance premium A/C $395
27 To unearned income A/C $750 5 By Equipment A/C $6000
29 To bills receivable A/C $2800 7 By supplies A/C $475
26 By Account payable A/C $1000
30 By Interest A/C $60
30 By Salary A/C $2825
30 By Drawings A/C $700
30 By Drawings A/c $1150
 30 By Balance c/d $22,655
$39,540 $39,540

EQUIPMENT A/C

Date Particular Amount Date Particular Amount

1 To owner’s capital A/C $12,000 30 By Balance c/d $30,000

5 To Note payable A/C $12,000
5 To cash A/C $6000
$30,000 $30,000

OWNER’S CAPITAL A/C

Date Particular Amount Date Particular Amount

30 By Balance c/d $47,000 1 By Cash A/C $35,000

1 By Equipment A/C $12,000

$47,000 $47,000

PREPAID RENT A/C

Date Particular Amount Date Particular Amount

3 To Cash A/C $2140 30 By Balance c/d $2140

$2140 $2140

INSURANCE PREMIUM A/C

Date Particular Amount Date Particular Amount

4 To Cash A/C $395 30 By Balance c/d $395

 $395 $395

NOTE PAYABLE A/C

Date Particular Amount Date Particular Amount

30 To Balance c/d $12,000 5 By Equipment A/C $12,000

$12,000 $12,000

SUPPLIES A/C

Date Particular Amount Date Particular Amount

6 To Account payable A/C $1550 30 By Balance c/d $2025

7 To Cash A/C $475

$2025 $2025

ACCOUNT PAYABLE A/C

Date Particular Amount Date Particular Amount

26 To Cash A/C $1000 6 By Supplies A/c $1550

30 To Balance c/d $770 27 By telephone expense A/C $220

$1770 $1770

SERVICE REVENUE A/C

Date Particular Amount Date Particular Amount

30 To Balance c/d $5490 16 By Cash A/C $990

20 By Bills receivable A/C $4500

$5490 $5490

BILLS RECEIVABLE A/C

Date Particular Amount Date Particular Amount

20 To service revenue A/C $4500 29 By Cash A/C $2800

30 By Balance c/d $1700
$4500 $4500

UNEARNED INCOME A/C

Date Particular Amount Date Particular Amount

30 To Balance c/d $750 27 By unearned income A/C $750

$750 $750
 INTEREST A/C

Date Particular Amount Date Particular Amount

30 To Cash A/C $60 30 By Balance c/d $60

$60 $60

SALARY A/C

Date Particular Amount Date Particular Amount

30 To Cash A/C $2825 30 By Balance c/d $2825

$2825 $2825

DRAWINGS A/C

Date Particular Amount Date Particular Amount

30 To Cash A/C $700 30 By Balance c/d $1850

30 To Cash A/C $1150

$1850 $1850
 RENT EXPENSE A/C

Date Particular Amount Date Particular Amount

3 To Cash A/C $2140 30 By Balance c/d $2140

$2140 $2140

TELEPHONE EXPENSE A/C

Date Particular Amount Date Particular Amount

27 To Account payable A/C $220 30 By balance c/d $220

$220 $220
TRIAL BALANCE FOR KIERSTED FINANCIAL SERVICES
AS AT 1 NOVEMBER,2021
PARTICULAR DEBIT CREDIT
Cash $22,655
Equipment $30,000
Prepaid rent $2140
Insurance premium $395
$12,000
Note payable
Supplies $2025
$770
Account payable
Service revenue $5490

Bills receivable $1700

Unearned income $750

Interest $60
Salary $2825
Drawings $1850
Owner’s capital $47,000

Rent expense $2140

Telephone expense $220

$66,010 $66,010

Taking it further:
This isn't correct. The money account shows an expansion of $22,655 during the long stretch of
November, though the organization shows a deficiency of $150 for the month($5490-$395-$60-
$2140-$220-$2825). The adjustment of the money account doesn't reflect benefit or
misfortune in light of the fact that not all exchanges address expansions in incomes or costs.
One of the significant wellsprings of money during the month is a venture by the proprietor of
$35,000. This expands proprietor's value, yet isn't a wellspring of income for the organization.
The organization got cash ahead of tackling job and performed benefits ahead of installment
,just as making non-cost installments for administrations ahead of time, installments for
hardware and for proprietor drawings. The assertion of incomes accommodates the
progressions in the money record to its different uses and sources.