ASSIGNMENT 10

Chapter 4 ( PART 1 )
Page 112 Check your reading

1. A journal is a record of the transactions recorded in the chronological order (order of date).
2. Because it is where transactions are first recorded.
3. Each transaction recorded in journal called an entry.
4. The process of recording transactions in journal called journalizing.
5. The Date of the transactions; the account debit and amount; the credit and amount; and explanation of detail of
transactions.
6. The credit part in each transaction should be indented.
7. First, it is easier to find error, because all of the transactions are recorded in one place and also some details.
Second, represents a chronological history of all of the business transactions. Third, a journal makes it easy possible
to determine the daily, weekly, or monthly volume of business and to identify busy periods more easily. Fourth, a
journal provides a convenient picture of each day’s business.
8. Double-entry principle requires the total debit equals to the total credit.

Page 112 Apply your knowledge

1.
GENERAL JOURNAL
20- PARTICULARS P.R. DEBIT CREDIT
Oct. 1 Cash 20 0 0 0 00
A. Mirabeau, Capital 20 0 0 0 00
A. Mirabeau invested $20 000 cash

4 Cash 16 0 0 0 00
Tickets Sales 16 0 0 0 00
Tickets Sales for the week $16 000

4 Cash 2 4 0 0 00
Refreshment sales 2 4 0 0 00
Refreshment sales for this week $2 400

7 Film Rental Expense 5 0 0 0 00

Cash 5 0 0 0 00
Paid Film Rental Expense, $5 000, cheque241

7 Salaries Expense 1 9 0 0 00
Cash 1 9 0 0 00
Paid salaries, $1 900, Cheque 242

10 Advertising Expense 7 0 0 00
Cash 7 0 0 00
Paid Advertising Expenses $700, Cheque 243

11 Hydro Expense 2 5 0 00
Cash 2 5 0 00
Paid hydro expense $250, Cheque 244
2.
GENERAL JOURNAL
20- PARTICULARS P.R. DEBIT CREDIT
Aug. 1 Cash 40 0 0 0 00
R. Liley, Capital 40 0 0 0 00
R. Liley invested $40 000 cash

2 Equipment 2 0 0 0 00
Cash 2 0 0 0 00
Purchased equipment for $2000, cheque 107

4 Automobiles 36 0 0 0 00
Cash 36 0 0 0 00
Purchased cars for $36 000, cheque 108

5 Cash 1 7 0 0 00
Revenue from lessons 1 7 0 0 00
Received $1700 from lesson

7 Salaries Expense 1 3 0 0 00
Cash 1 3 0 0 00
Paid $1300 for Salaries, cheque 109

9 Utilities Expense 2 7 5 00
Cash 2 7 5 00
Paid $275 to Bell, cheque 110

10 Cash 1 8 0 0 00
Revenue from lessons 1 8 0 0 00
Received $1800 from lesson, Sales Slips 297-300

11 Account Receivable/L. Starr 4 0 0 00

Revenue of Lessons 4 0 0 00
Issued an invoice for $400 lesson, invoice 192

11 Automobile Expense 2 9 0 00
Account Payable 2 9 0 00
Received a bill $290 for gas and oil

12 Automobile Expense 1 9 0 00
Cash 1 9 0 00
Paid $190 for hydro, cheque 111

13 Advertising Expense 1 7 0 00
Cash 1 7 0 00
Sent $170 for advertising, cheque 112

14 Cash 4 0 0 00
Account Receivable 4 0 0 00
Received $400 cash, Cash Receipt 427
3.

GENERAL JOURNAL
20- PARTICULARS DEBIT CREDIT
P.R
Feb. 1 Cash 9 0 0 0 00
G. Sloan, Capital 9 0 0 0 00
G. Sloan invested $9 000 cash

2 Cash 6 0 0 00
Service Revenue 6 0 0 00
Sold services to D. Ferris, $600, Sale Slip 472

3 Account Receivable 2 5 0 00
Service Revenue 2 5 0 00
Sold service to W.A. $250 on credit,Sales Invoice 872

4 Account Receivable 7 0 0 00
Service Revenue 7 0 0 00
Sold service to T.T.,$700 on credit, invoice 873

5 Cash 1 0 0 00
Account Receivable 1 0 0 00
Received $100 from W.A. owing, Cash Receipt 741

8 Cash 7 0 0 00
Account Receivable 7 0 0 00
Received $700 from T.T. full owing, Cash receipt 742

8 Rent Expense 1 5 0 0 00
Account Payable 1 5 0 0 00
Owner paid $1500 for office renting from his own

9 Computer 2 5 0 0 00
Cash 2 5 0 00
Account Payable 2 2 5 0 00
bought computer $2500, $250 for cash, remainder on credit
Invoice 4692, cheque 791

10 Hydro Expense 3 5 7 00
Account Payable 3 5 7 00
Received a bill $357 for hydro and will pay in 10 days
( PART 2 )
Page 131 check your reading

9. Posting is the transfer of information from a journal to a general ledger.

10. Steps in posting: (1) located the account
(2) Record the date
(3) Enter the amount
 (4) Calculate the new balance
(5) Complete the ledger posting reference column
(6) Complete the journal posting reference column
11. The page that involved this transaction in general journal is written in the posting reference in ledger; the number
of the journal is written in the posting reference in general journal.
12. The opening entry records the assets, liabilities, and owner’s equity when a business first begins operation.
13. A compound entry has more than one debit or more than one credit.
14. A chart of account is a list of the names and account numbers of all of the accounts in the ledger.
15. The accounting cycle is the set of accounting procedures performed in each accounting period.
16. (a) The difference between debit and credit should be $1,200.
(b) This kind error can be found by using journal.
17. Transportation error is a kind of error that happened when accountant record the number reversed (like 79 is
recorded as 97).
18. (a) Because the difference in total of the balance is $100, so the type of the error should be an additional or
subtraction error.
(b) Because the difference is $270 which is a multiple of 9, so it should be a transportation error.

Page 131 Apply your knowledge

4.(a)

GENERAL LEDGER
ACCOUNT: Cash No. 100
DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
20-
Dec. 1 Forwarded √ D.R. 4 2 6 1 00
2 J16 1 0 0 00 D.R. 4 3 6 1 00
2 J16 1 7 5 00 D.R. 4 1 8 6 00
3 J16 1 6 2 50 D.R. 4 3 4 8 50
3 J16 8 4 3 75 D.R. 5 1 9 2 25
4 J17 4 9 23 D.R. 5 1 4 3 02
5 J17 8 6 19 D.R. 5 2 2 9 21
5 J17 2 1 3 3 70 D.R. 3 0 9 5 51

(b)

GENERAL LEDGER
ACCOUNT: Cash No. 101
DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
20-
Dec. 5 Forwarded √ D.R. 3 0 9 5 51
(c) Goldman’s Gym

Chart of account
Assets
100 Cash
110 Account Receivable
120 Office Supplies
 130 Land
140 Building
150 Training Equipment
Liabilities
200 Account Payable
210 Bank Loan
220 Mortgage Payable
Owner’s Equity
300 R. Millar, Capital
310 R. Millar, Drawing
Revenue
400 Members’ fees
Expenses
500 Towel Rental
510 Licence Expense
520 Sports Equipment Rental
530 Maintenance Expense
540 Salaries Expense
550 Advertising Expense
560 Telephone Expense
570 Interest Expense
580 Laundry Expense

5. (a)
 GENERAL JOURNAL Page 1
20- PARTICULARS P.R. DEBIT CREDIT
Feb. 1 Cash 100 40 0 0 0 00
M. Conway, Capital 300 40 0 0 0 00
Owner invested $40 000 cash in business

2 Office Equipment 141 3 0 0 0 00

Cash 100 3 0 0 0 00
Bought $3000 Office Equipment, cheque 1

3 Automobile 142 21 0 0 0 00
Account Payable/Ajax Motors 200 21 0 0 0 00
Bought $21 000 Automobile on credit, invoice 7469

4 Cash 100 1 5 0 0 00
Fees Earned 400 1 5 0 0 00
Received $1500 for service from a customer, Sales Slip 1

5 Account Receivable 101 1 0 0 0 00

Fees Earned 400 1 0 0 0 00
Sent invoice 1 for $1000 for service provide

5 Rent Expense 507 1 6 0 0 00

Cash 100 1 6 0 0 00
Paid $1600 for Feb. rent, cheque 2

5 Office Salaries 508 1 4 5 0 00

Cash 100 1 4 5 0 00
Paid Office Salaries $1450, cheque 3

5 Telephone Expense 510 1 5 0 00

Cash 100 1 5 0 00
Paid $150 for Telephone Expense, cheque 4

(b) (c)
 GENERAL LEDGER
ACCOUNT: Cash No. 100
ACCOUNT:
DATE AccountPARTICULAR
Receivable/Bak Contractors
P.R. DEBIT CREDIT C.R./D.R. No.BALANCE
101
20-DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
ACCOUNT:
20-
Feb. 1 Office Equipment
Opening Entry J1 40 0 0 0 00 D.R. No.
401410 0 0 00
DATE5
Feb. 2 PARTICULAR P.R.
J1
J1 1DEBIT
0 0 0 00 CREDIT
3 0 0 0 00 C.R./D.R.
D.R.
D.R. BALANCE
37 0 00 00 00
1 0 00
ACCOUNT:
20- Automobile No. 142
4 J1 1 5 0 0 00 D.R. 38 5 0 0 00
DATE2
Feb. PARTICULAR P.R. 3 DEBIT CREDIT C.R./D.R. BALANCE
5 Account Payable/Ajax Motors J1
ACCOUNT: J1 0 0 0 00 1 6 0 0 00 D.R.
D.R. 36
No.
3 09 00 00 00
200 00
20-
5
DATE3 PARTICULAR J1
P.R. 1 4 5 0 00 D.R. 35 4 5 0 00
Feb. J1 21DEBIT
0 0 0 00 CREDIT C.R./D.R.
D.R. BALANCE
21 0 0 0 00
5
ACCOUNT:
20- M. Conway, capital J1 1 5 0 00 D.R. 35300
No. 3 0 0 00
DATE3
Feb. PARTICULAR P.R.
J1 DEBIT 21CREDIT
0 0 0 00 C.R./D.R.
C.R. BALANCE
21 0 0 0 00
ACCOUNT: Fees Earned
20- No. 400
DATE1
Feb. PARTICULAR
Opening Entry P.R.
J1 40 DEBIT
0 0 0 00 CREDIT C.R./D.R.
C.R. BALANCE
40 0 0 0 00
20-
Feb. 4 J1 1 5 0 0 00 C.R. 1 5 0 0 00
ACCOUNT:
5 Rent Expense J1 1 0 0 0 00 C.R. No.2507
5 0 0 00
DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
ACCOUNT: Salaries Expense
20- No. 508
DATE5
Feb. PARTICULAR P.R.
J1 1DEBIT
6 0 0 00 CREDIT C.R./D.R.
D.R. BALANCE
1 6 0 0 00
ACCOUNT: Telephone Expense
20- No. 510
DATE5
Feb. PARTICULAR P.R.
J1 1DEBIT
4 5 0 00 CREDIT C.R./D.R.
D.R. BALANCE
1 4 5 0 00
20-
Feb. 5 J1 1 5 0 00 D.R. 1 5 0 00
(d)

M. Conway
Trial Balance
February 5, 20-
Account Acc. No. Debit Credit
Cash 100 $ 35,300
Accounts Receivable/Bak Contractors 101 1,000
Office Equipment 141 3,000
Automobile 142 21,000
Accounts Payable/Ajax motors 200 $ 21,000
M. Conway, Capital 300 40,000
Fees Earned 400 2,500
Rent Expense 507 1,600
Salaries Expense 508 1,450
Telephone Expense 510 150

Total $ 63,500 $ 63,500

6. (a) This error should be the additional or subtraction error, because the difference between total debit and total
credit is 100.

(b) This error should be an additional or subtraction error, because the difference between the total debit and total
credit is 50 the multiple of 10.

(c) This error is transposition error, because the difference between the total credit and total debit is 180 that is a
multiple 9.

7. (a) First, in the Supplies Account, all of the “D.R./C.R.” column should be recorded as “D.R.”, because the Supplies
Account is always in the left side of the Balance Sheet.

Second, the last balance of November 5 has a calculating error. It should be $ 2,600.00.
 (b)

GENERAL LEDGER
ACCOUNT: Supplies No. 103
DATE PARTICULAR P.R.
GENERAL DEBIT
JOURNAL CREDIT C.R./D.R.
Page 1 BALANCE
20- 20- PARTICULARS P.R. DEBIT CREDIT
Nov. Oct
1 1 Forwarded
Cash √ 2 5 0 0 00 D.R. 2 2 0 0 00
. 2 J3 2 0 0 00 D.R. 2 0 0 0 00
3 Equipment J3 4 0 0 00 5 5 0 0 00 D.R. 2 4 0 0 00
4 Building J3 1 5 0 00 175 0 0 0 00 D.R. 2 5 5 0 00
5 Land J3 5 0 00 75 0 0 0 00 D.R. 2 6 0 0 00
Bank Loan 3 0 0 0 00
8. Mortgage 70 0 0 0 00
Ahmad Nauman’s Equity 185 0 0 0 00
Started an insurance agency business with the
above Assets, Liabilities and Owner’s Equity.

9. (a) (b)

GENERAL JOURNAL Page 1

20- PARTICULARS P.R. DEBIT CREDIT
Sep 1 Cash 2 2 0 0 00
.
Equipment 4 3 0 0 00
Bank Loan 3 5 0 0 00
Vanita Khanna’s Equity 3 0 0 0 00
Started an office service business with above
Assets, Liabilities and Owner’s Equity.

1 Rent Expense 1 5 0 0 00
Cash 1 5 0 0 00
Paid the first month rent $1500, cheque 1

1 Account Receivable 2 5 0 00
Fees from Clients 2 5 0 00
Mailed an invoice to client for $250, invoice 1

2 Advertising Expense 1 7 5 00
Account Payable 1 7 5 00
Received invoice 6789 for advertising $175

3 Office Supplies 1 1 5 00
Account Payable 1 1 5 00
Purchased $115 equipment on credit, invoice 2694
 GENERAL JOURNAL Page 2
20- PARTICULARS P.R. DEBIT CREDIT
Sep. 4 Cash 8 5 00
Fees from Client 8 5 00
Received $85 from a client for work, Sales Slip1

5 Owner’s Drawing 8 2 5 00
Cash 8 2 5 00
Mailed a cheque for $825 drawn, cheque 2

8 Cash 2 5 0 00
Account Receivable 2 5 0 00
J. Jamison paid bill issued in Sep. 1 $250 in full

9 Account Payable 5 0 00
Office Supplies 5 0 00
Returned $50 box of envelopes bought in Sep. 3

10 Account Payable 1 7 5 00
Cash 1 7 5 00
Paid $175 for Sep.2 advertising owing to them, cheque 3

11 Account Payable 1 1 5 00
Cash 1 1 5 00
Paid $115 for Beattie’s in full, cheque 4

(c) Omit the Transaction in Sep. 6, because at that time the company only contracted with another company and the
action of selling goods or services didn’t happen. So based on the Accrual Basis of Accounting, the transaction could
not be recorded.

PART 3
Page 143 check your reading

19. (a) A source document is any business form that serves as the original source of information that a transaction
has occurred.
(b) There are some examples of source documents: sales invoice; cash sales slip; purchase invoice; cheques issued.
(c) The numbering of documents is a control procedure designed to prevent errors and losses due to theft or to the
use of false documents.
(d) (i) cash sale------cash sales slip
(ii) sale on account------sales invoice
(iii) purchase on account------purchase invoice
(iv) purchase by cheque------cheques
20. (a) The “seller” is SANNE CONSULTANTS.
(b) The “buyer” is NewStar Software.
(c) Invoice number is “5871”.
Invoice Date is “June 2, 20-”.
Invoice total is “$1926.00”.
Page 144-147 apply your knowledge
Exercise Part A
10. (a)

GENERAL JOURNAL Page 1

20- PARTICULARS P.R. DEBIT CREDIT
Nov. 30 Cash 100 3 0 0 0 00
Supplies 101 2 0 0 0 00
Office Equipment 141 2 0 0 0 00
Building 143 150 0 0 0 00
Furniture 144 20 0 0 0 00
Automobile 145 6 0 0 0 00
Account Payable/Acme Supply 200 3 0 0 0 00
Bank Loan 210 25 0 0 0 00
Mortgage Payable 220 60 0 0 0 00
B. Fenato, Capital 260 95 0 0 0 00
Ridgeview Motel started with the assets,
Liabilities and equity above.

(b)

GENERAL JOURNAL Page 1

20- PARTICULARS P.R. DEBIT CREDIT
Dec 1 Automobile Expense 506 5 0 00
.
Cash 100 5 0 00
Paid $50 for automobile repairs, cheque 125

2 B. Fenato, Drawing 301 1 5 0 00

Cash 100 1 5 0 00
B. Fenato withdrew $150 cash, cheque 126

3 Account Payable/Acme Supply 200 1 0 0 0 00

Cash 100 1 0 0 0 00
Paid $1000 to reduce the owing to Acme, cheque 127

4 Telephone Expense 503 1 7 5 00

Cash 100 1 7 5 00
Received $175 for service from a customer, cheque 128

5 Cash 100 9 0 0 00
Room Rental 400 9 0 0 00
Received $900 for room rental, sales slip 246-269

8 Supplies 101 1 2 0 00
Account Payable/Acme Supply 200 1 2 0 00
Purchased $120 supplies, invoice 742

10 B. Fenato, Drawing 301 1 2 5 00

Cash 100 1 2 5 00
Owner withdrew $125, cheque 129
 GENERAL JOURNAL Page 2
20- PARTICULARS P.R. DEBIT CREDIT
Dec 11 Office Equipment 141 2 0 0 00
.
Cash 100 2 0 0 00
Purchased $200 printing calculator, cheque 130

12 Cash 100 1 1 0 0 00
Room Rental 400 1 1 0 0 00
Received $1100 from room rentals, sales slip 270-289

12 General Expense 501 1 2 00

Cash 100 1 2 00
Paid $12 for postage stamps, cheque 131

12 Utilities Expense 505 4 6 5 00

Cash 100 4 6 5 00
Paid $465 for hydro and water, cheque 132 and 133

15 Advertising Expense 500 7 5 00

Cash 100 7 5 00
Paid $75 to A.P. for advertising, cheque 134

15 Advertising Expense 500 4 5 00

Cash 100 4 5 00
Paid $45 for advertising in newspaper, cheque 135

16 B. Fenato, drawing 301 2 5 0 00

Cash 100 2 5 0 00
B.F. withdrew $250, cheque 136

16 Salaries Expense 502 7 5 0 00

Cash 100 7 5 0 00
Paid $750 for first half month salary, cheque137

18 Interest Expense 507 3 5 0 00

Cash 100 3 5 0 00
Bank sent a memo of $350 for interest

19 Cash 100 1 7 5 0 00
Room Rentals 400 1 7 5 0 00
Received $1750 from Room rental, sales slip 290-317

22 Supplies 101 2 2 5 00
Account Payable/Acme Supply 200 2 2 5 00
Received a bill of $225 from A.S., invoice 3264

23 Automobile Expense 506 8 5 00

Account Payable/Kelly Motor 201 8 5 00
Received a bill of $85 for cars Expense, invoice 684
 GENERAL JOURNAL Page 3
20- PARTICULARS P.R. DEBIT CREDIT
Dec 25 Account Payable/Acme Supply 200 3 5 0 00
.
Cash 100 3 5 0 00
Paid $350 to A.S. owing to them, cheque 138

26 Cash 100 1 5 2 5 00
Room Rental 400 1 5 2 5 00
Received $1525 from Room Rental, sales slip 318-340

31 Salaries Expense 502 1 3 6 5 00

Cash 100 1 3 6 5 00
Paid salaries $1365 for the month, cheque 139

(c)(d)

GENERAL LEDGER
ACCOUNT: Supplies
Cash No. 100
No. 101
DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
20-
Dec. 8 1 Forward J1 1 2 0 00 D.R. 2
3102 0 0 0000
ACCOUNT:
22 Office Equipment J2 2 2 5 00 D.R. No.2141
3
1 J1 5 0 00 94 5 50 00
00
DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
2 Building
ACCOUNT: J1 1 5 0 00 D.R. 2 8143
No. 0 0 00
20-
DATE3
Dec. 11 PARTICULAR
Forward
J1
P.R.
J2 DEBIT
2 0 0 00
1CREDIT
0 0 0 00 D.R.
C.R./D.R.
D.R.
1 8 0 0 00
BALANCE
2 2 0 0 00
4
ACCOUNT:
20- Furniture J1 1 7 5 00 D.R. 1 6
No. 1442 5 00
DATE5
Dec. 1 PARTICULAR
Forward J1
P.R.
J1 9000000000
150DEBIT CREDIT D.R.
C.R./D.R.
D.R. 2 5020500000
BALANCE
150
ACCOUNT:
20- 10 Automobile J1 1 2 5 00 D.R. No.
2 4145
0 0 00
DATE1
Dec. 11 PARTICULAR
Forward P.R.
J2
J1 20 DEBIT
0 0 0 00 CREDIT
2 0 0 00 C.R./D.R.
D.R. BALANCE
2 20 0 0 00
20 00
ACCOUNT:
20- 12 Account Payable/Acme Supply J2 1 1 0 0 00 D.R. No.3 200
3 0 0 00
DATE12
Dec. 1 PARTICULAR
Forward P.R.
J1
J2 6 DEBIT
0 0 0 00 CREDIT
1 2 00 C.R./D.R.
D.R. BALANCE
6
3020 8 80 00
ACCOUNT:
20- 12 Account Payable/Kelly Motor J2 4 6 5 00 D.R. No.2201
8 2 3 00
DATE3
Dec. 15 PARTICULAR
Forward P.R.
J1
J2 1DEBIT
0 0 0 00 CREDIT
7 5 00 C.R./D.R.
C.R.
D.R. BALANCE
2
2070 40 8 00
00
ACCOUNT:
20- 8 Bank Loan J1 1 42 50 00 C.R. No.
2 210
15 J2 00 D.R. 2172 0 03 00
00
DATE23
Dec. 22 PARTICULAR P.R.
J2
J2 DEBIT CREDIT
2 82 55 00 C.R./D.R.
C.R.
C.R. BALANCE
2 3 84 55 00
16 Mortgage Payable
ACCOUNT: J2 2 5 0 0000 D.R. 2 4220
No. 5 3 0000
20- 25 J3 3 5 0 00 C.R. 1 9 9 5
DATE16 J2 7 5 0 00 D.R. 1 7 0 3 00
00
Dec. 1 PARTICULAR
Forward P.R.
J1 DEBIT 25CREDIT
0 0 0 00 C.R./D.R.
C.R. BALANCE
25 0 0 0 00
18
ACCOUNT:
20- B. Fenato, Capital J2 3 5 0 00 D.R. 1 3260
No. 5 3 00
Dec. 19
DATE1 PARTICULAR J2
P.R.
J1 1DEBIT
7 5 0 00 60CREDIT
0 0 0 00 D.R.
C.R./D.R.
C.R. 3 10 00 30 00
BALANCE
60 00
ACCOUNT:
20- 25 B. Fenato, Drawing J3 3 5 0 00 D.R. No.
2 7301
5 3 00
DATE26
Dec. 1 PARTICULAR
Forward P.R.
J3
J1 1DEBIT
5 2 5 00 CREDIT
95 0 0 0 00 C.R./D.R.
D.R.
C.R. BALANCE
4 20 70 80 00
95
ACCOUNT:
20- 31 Room Rental J3 1 3 6 5 00 D.R. No.
2 9400
1 3 00
DATE2
Dec. PARTICULAR P.R.
J1 DEBIT
1 5 0 00 CREDIT C.R./D.R.
D.R. BALANCE
1 5 0 00
ACCOUNT:
20- 10 Advertising Expense J1 1 2 5 00 D.R. No.25007 5 00
ACCOUNT:
DATE5
Dec. General Expense
PARTICULAR P.R.
J1 DEBIT CREDIT
9 0 0 00 C.R./D.R.
C.R. No. 50100
BALANCE
9
16 J2 2 5 0 00 D.R. 50 20 5 00
20-DATE12 PARTICULAR P.R.
J2 DEBIT CREDIT
1 1 0 0 00 C.R./D.R.
C.R. BALANCE
2 0 0 0 00
ACCOUNT:
20-
Dec. 15 Salaries Expense J2 7 5 00 D.R. No. 7502
19 J2 1 7 5 0 00 C.R. 3 7 5 50 0000
DATE
Dec. 1215 PARTICULAR P.R.
J2 DEBIT
1
425 00 CREDIT C.R./D.R.
D.R. BALANCE
1 12 20 00
26 Telephone Expense
ACCOUNT: J3 00 1 5 2 5 00 C.R. 5 2 503
No. 7 5 0000
20-
DATE16
Dec. PARTICULAR P.R.
J2 DEBIT
7 5 0 00 CREDIT C.R./D.R.
D.R. BALANCE
7 5 0 00
20- 31 J3 1 3 6 5 00 D.R. 2 1 1 5 00
Dec. 4 J1 1 7 5 00 D.R. 1 7 5 00
 ACCOUNT: Utilities Expense No. 505
DATE PARTICULAR P.R. DEBIT CREDIT C.R./D.R. BALANCE
ACCOUNT:
20- Automobile Expense No. 506
DATE
Dec. 12 PARTICULAR P.R.
J2 DEBIT
2 9 0 00 CREDIT C.R./D.R.
D.R. BALANCE
2 9 0 00
ACCOUNT:
20- 12 Interest Expense J2 1 7 5 00 D.R. No.4 507
6 5 00
DATE1
Dec. PARTICULAR P.R.
J1 DEBIT
5 0 00 CREDIT C.R./D.R.
D.R. BALANCE
5 0 00
20- 23 J2 8 5 00 D.R. 1 3 5 00
Dec. 18 J2 3 5 0 00 D.R. 3 5 0 00
(e).

Ridgeview Motel
Trial Balance
Dec. 31, 20-
Account Account No. Debit Credit
Cash 100 $ 2,913
Supplies 101 2,345
Office Equipment 141 2,200
Building 143 150,000
Furniture 144 20,000
Automobile 145 6,000
Account payable/Acme Supply 200 $1,995
Account payable/Kelly Motor 201 85
Bank Loan 210 25,000
Ridgeview Motel
Mortgage Payable 220 60,000
B. Fenato, Capital
Balance260
Sheet 95,000
Dec. 31, 20-
B. Fenato, Drawing 301 525
Room Rental Assets
400 5,275
Advertising Expense
Cash 500 $120
2,913
General Expense
Supplies 501 12
2,345
Salaries
Office Expense
Equipment 502 2115
2,200
Telephone Expense
Building 503 175
150,000
Utilities Expense
Furniture 505 465
20,000
Automobile Expense 506 135
Automobile 6,000
Interest Expense 507 350
Total Assets $ 183,458
Liabilities and Owner’s Equity
Total $ 187,355 $187,355
Liability
Account payable/Acme Supply Ridgeview Motel $ 1,995
Account payable/Kelly Motor Income Statement 85
Bank Loan Dec. 31, 20- 25,000
(f)
Mortgage Payable
Revenue 60,000
Room RentalTotal Liabilities $ 5,275 $ 5,275$ 87,080
Expense
Advertising Owner’s
Expense Equity 120
B. Fenato,
General Capital November 30
Expense 12 $ 95,000
Add: NetExpense
Salaries Income for December $2115
1,903
Less: Drawing
Telephone Expense 175525
Utilities Expense
Increase in Capital 465
1,378
Automobile
B. Expense
Fenato, Capital December 31 135 96,378
Interest
Total Expenseand Owner’s Equity
Liabilities 350 3,372 183,458
Net Income $ 1,903
11. I think B. Fenato should be satisfied, because he got a net income in his business.
If I can get the ratio of the income over expense should be better, because it shows the relative effect to make
money.
12. (a) Here are the mistakes:
(1) In Oct. 2, the “Cash” should be “Account Receivable”, because the company just received the invoice not
money.
(2) In Oct. 3 and 6, the debit amount should be put earlier than credit amount.
(3) In Oct. 4, there doesn’t have the detail of the transaction.
(4) In Oct. 5, Account Receivable should be recorded the amount on the credit side, Cash should be in the
debit side and also there is a transportation error.
 (5) In Oct. 6, Cash should be in the credit and Advertising Expense should be in the debit.
(b) (1) In Oct. 2, when the mistake of recording as “Cash” not as ”Account Receivable”, it won’t have any effect on
Trial Balance before the company receives cash; but when it receives, the cash account will be increase and account
receivable will decrease, trial balance is still balance.
(2) The converse of debit and credit won’t have any problem in the Trial Balance or account balance.
(3) The detail mistake won’t have any influence in Trial Balance or account balance.
(4) The first mistake that record in the opposite debit and credit won’t have any influence in trial balance but
Account Receivable increase, Cash decrease; the second mistake of the wrong amount of the cash will decrease the
Cash account.
(5) The recording in opposite debit and credit will have no effect on Trial Balance but increase Cash, decrease
Advertising Expense.
(c) May be when the money is really received, the accountant will find it.
(d) When the Trial Balance are made, the wrong number will appear but the opposite of the debit and credit won’t
appear.
13.

Erro Total revenue Total Expense Net Total Assets Total Liability Owner’s Equity
r income
(b) ↓ − ↓ ↓ − ↓
(c) − − − − − −
(d) − ↑ ↓ ↓ − ↓
(e) − − − − ↓ ↑
(f) ↑ − ↑ ↑ − ↑
(g) − − − − − −
(h) − ↑ ↓ ↓ − ↓
(i) − − − ↓ − ↓
(j) ↓ − ↓ ↓ − ↓

14. (a) Cash Sales Slips

(b) Sales Invoice
(c) Cheque
(d) Purchase Invoice
(e) Cheque
(f) Cheque Received and Sales Slip

15. (a) Because of the “Matching Principle”, each expense should be recorded.
(b) Because the invoice is the source document and received in November 15 which proof the company have
such a transaction, according to the Accrual Basis of Accounting we need to record it when we receive the document
or the proof of the expenses incrualed.

Page 160-161 Case Study

CASE 1 (a) He can trace it from the General Ledger to find the number of the source document.
(b) Cash Sales Slip may be prepared for the transaction.
(c) The quickest way is to find its number in General Journal.

CASE 2
Follows the Accrual Basis of Accounting, the revenue should be $6000+$3500=$9500; the expense should be
$4000+$3200=$7200. So the net income should be revenue-expense=$9500-$7200=$2300.
CASE 3 (a)
ERRO PARTICULA
R
1 Characteristic
The Sales account YesJournal. Need to
in Nov.2 was not indented in the Could never
2 This transaction in Nov.3 doesn’t have brief detail. develop develop
3 Self-confidence
In Nov.3 debit is not recorded before credit. √
4 Ability to learn on my own
Under the Nov.3, there only recorded the month not √ the date.
5 Ability In to teach
Nov.5 theothers √
amount of Account Payable was recorded in the debit√column.
Problem-solving skills √
(b) Oral communication skills √
Hobbies and/or extracurricular interests GENERAL JOURNAL √ Page 17
20-Interpersonal skills PARTICULARS √ P.R. DEBIT CREDIT
Organization
Nov. 2 Cashskill √ √5 0 0 00
Time-managementSales skills √ 5 0 0 00
Leadership skills
Sold goods for cash √ √
Self-starter (shows initiative) √ √
Team3 playerSupplies √ √1 0 0 00
Technical skillCash √ 1 0 0 00
Purchase Supplies in cash

3 Cash 2 0 0 00
Delivery Expense 2 0 0 00
Cheque 81 to Central Cartage

4 Account Receivable 5 0 0 00
Sales 5 0 0 00
Invoice 871

5 Supplies 1 2 0 00
Account Payable 1 2 0 00
Invoice B-120, Grand & Toy

CASE 4 (a) (iii)

(b) (i) (ii) (iv) (v)

Career Education Activity

1.(a)
(b) In order to develop these skills and character, I should try to get more opportunity to teach others, give my own
idea to my team.

2. (a) The accounting duties are: provide policy/ technical advice for the province’s investment/ debt activities and
financial reporting. You will research current accounting issues; demonstrated success delivery service, managing
projects, negotiating, managing staff, excellent analytical, writing presentation, consulting skills, experience with
relevant information……
(b) Good understanding of financial instruments, associated current accounting issues, demonstrated success
delivering service, managing project, negotiating, managing staff, working experience.
(c) Previously, worked in a same kind of company.
Operating a company by yourself.
(d) It can get more opportunity to get good employees.
(e) He can find a lot of good jobs to choose which is better.