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  • AE13 Final Activity

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    Wenjun
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    1) The document provides journal entries for transactions made by a company from January 1 to December 31, 2021. 2) It records the owner's capital investment, purchase of equipment, a loan taken, prepaid insurance, service fees earned, accounts receivable collected, salaries and supplies expenses paid, utilities expense, and owner's withdrawal. 3) The journal entries are posted to T-accounts to update account balances and an unadjusted trial balance is prepared with total debits equaling total credits.

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    1) The document provides journal entries for transactions made by a company from January 1 to December 31, 2021. 2) It records the owner's capital investment, purchase of equipment, a loan taken, prepaid insurance, service fees earned, accounts receivable collected, salaries and supplies expenses paid, utilities expense, and owner's withdrawal. 3) The journal entries are posted to T-accounts to update account balances and an unadjusted trial balance is prepared with total debits equaling total credits.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    34 views5 pages

    AE13 Final Activity

    Uploaded by

    Wenjun
    1) The document provides journal entries for transactions made by a company from January 1 to December 31, 2021. 2) It records the owner's capital investment, purchase of equipment, a loan taken, prepaid insurance, service fees earned, accounts receivable collected, salaries and supplies expenses paid, utilities expense, and owner's withdrawal. 3) The journal entries are posted to T-accounts to update account balances and an unadjusted trial balance is prepared with total debits equaling total credits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 5

    A. Provide the Journal entries for the transactions.

    Date Account Titles Debit Credit


    January 1, 2021 Cash 2,000,000.00
    Owner's Capital 2,000,000.00
    To record Owner's Capital Investment

    Equipment 1,000,000.00
    Cash 1,000,000.00
    To record purchase of Equipment

    Cash 500,000.00
    Notes Payable 500,000.00
    To record Loan Payable

    Prepaid Insurance 160,000.00


    Cash 160,000.00
    To record Insurance expense

    Cash 6,000,000.00
    Services Fees 6,000,000.00
    To record Services Fees earned

    Cash 1,800,000.00
    Accounts Receivable 1,800,000.00
    To record Accounts Receivable Collected

    Salaries Expense 1,200,000.00


    Cash 1,200,000.00
    To record Salaries Expense

    Utilities Expense 500,000.00


    Cash 500,000.00
    To record Utilities Expense

    Supplies 120,000.00
    Cash 120,000.00
    To record purchased supplies

    Owner's Withdrawal 1,400,000.00


    Cash 1,400,000.00
    To record Owner's withdrawal
    14,680,000.00 14,680,000.00
    B. Post the entries to the ledger using T-Accounts

    Cash Equipment
    Debit Credit Debit Credit
    2,000,000.00 1,000,000.00
    1,000,000.00 Ending Balance 1,000,000.00
    500,000.00
    160,000.00
    6,000,000.00 Prepaid Insurance
    1,800,000.00 Debit Credit
    1,200,000.00 160,000.00
    500,000.00 Ending Balance 160,000.00
    120,000.00
    1,400,000.00
    Ending Balance 5,920,000.00

    Service Fees Utilities Expense


    Debit Credit Debit Credit
    6,000,000.00 500,000.00
    6,000,000.00 Ending Balance Ending Balance 500,000.00

    Salaries Expense Supplies


    Debit Credit Debit Credit
    1,200,000.00 120,000.00
    Ending Balance 1,200,000.00 Ending Balance 120,000.00

    Owner's Capital Accounts Receivable


    Debit Credit Debit Credit
    2,000,000.00 1,800,000.00
    2,000,000.00 Ending Balance 1,800,000.00

    Notes Payable Owner's Withdrawal


    Debit Credit Debit Credit
    500,000.00 500,000.00
    500,000.00 Ending Balance Ending Balance 500,000.00

    9,400,000.00
    10,300,000.00
    Ending Balance
    C. Prepare the unadjusted trial balance using a worksheet

    Account Titles Debit Credit


    Cash 5,920,000.00
    Accounts Receivable 1,800,000.00
    Notes Payable 500,000.00
    Owner's Capital
    Owner's Withdrawal
    Service Fees
    Equipment
    Prepaid Insurance
    Salaries Expense
    Supplies
    Utilities Expense
    5,920,000.00 2,300,000.00
    - 3,620,000.00

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