General Journal Page 1

Dec. 1 Cash 101 16,000

Common Stock, $1 Par Value 301 100
Paid in Capital in Excess of Par Value - Common 302 15,900
To record the issuance of 100 shares of stock for
cash.
Cash is increased (debit) by the issue price. The journal entry would also include a credit to both Common Stock
(increased) and Paid-In Capital in Excess of Par--Common Stock (increased). For example, 1,000 shares of $5 par
value stock issued for $8 per share, the journal entry would be; Debit Cash $8,000 (1,000 shares x $8); Credit Common
Stock $5,000 (1,000 shares x $5); and Credit Paid-In Capital in Excess of Par--Common Stock $3,000 ($8,000-$5,000).

Accounts Receivable 111 2,000

Equipment 141 15,000
Cash 101 100
Common Stock, $1 Par Value 301 100
H. Fowl, Capital 17,000

2 Supplies 121 1,500

Cash 101 1,500
to record purchase of supplies.

7 Cash 101 55,800

Accounts Receivable 111 745
Fees Income 401 56,545
To record services rendered for cash and on
account.

9 Prepaid Insurance 134 3,600

Cash 101 3,600
To record payment of insurance in advance.

11 Cash 101 395

Accounts Receivable 111 395
To record collection of accounts.

12 Advertising Expense 529 395

Cash 101 395
To record payment of local radio advertising.

13 Cash 101 500

Accounts Receivable 111 500
To record collection of accounts.

14 Cash 101 40
Supplies 121 40
To record damaged supplies returned.

15 Cash 101 8,500

Accounts Receivable 111 400
Fees Income 401 8,900
To record services rendered for cash and on
account.
 18 Supplies 121 800
Accounts Payable 202 800
General Journal Page 2
To record supplies purchased on account.

19 Cash 101 3,890

Accounts Receivable 111 2,560
Fees Income 401 6,450
To record services rendered for cash and on
account.

20 Cash 101 750

Accounts Receivable 111 750
To record collection of accounts.

21 Maintenance Expense 535 1,275

Cash 101 1,275
To record payment of maintenance for office
equipment.

22 Advertising Expense 529 150

Cash 101 150
To record payment of advertisements in the local
newspapers.

23 Telephone Expense 532 215

Cash 101 215
To record payment of monthly telephone bill.

Cash 101 1,560

Accounts Receivable 111 1,560
To record collection of accounts.

26 Accounts Receivable 111 500

Fees Income 401 500
To record services rendered on account.

28 Utilities Expense 514 235

Cash 101 235
To record payment of utilities for cash.

29 Cash 101 5,890

Accounts Receivable 111 675
Fees Income 401 6,565
To record services rendered for cash and on
account.

30 Salaries Expense 511 5,400

Cash 101 5,400
To record payment of monthly salaries.

31 Maintenance Expense 535 415

Cash 101 415
To record payment for cleaning services.
 Equipment 141 6,000
Cash 101 1,250
General Journal Page 3
Accounts Payable 202 4,750
To record purchased of equipment for cash and on
account.

Cash 101 2,500

Customer Deposits 211 2,500
To record advance payment received for tax work.

Cash 101 545

Accounts Receivable 111 325
Fees Income 401 870
To record services rendered for cash and on
account.

101 Cash
Dec. 1 16,000 1,500 Dec. 2
100 3,600 9
7 55,800 395 12
11 395 1,275 21
13 500 150 22
14 40 215 23
15 8,500 235 28
19 3,890 5,400 30
20 750 415 31
23 1,560 1,250
29 5,890
31 2,500
545
Bal. 82,035

111 Accounts Receivable

Dec. 1 2,000 395 Dec. 11
7 745 500 13
15 400 750 20
19 2,560 1,560 23
26 500
29 675
31 325
Bal. 4,000

121 Supplies
Dec. 2 1,500 40 Dec. 14
18 800
Bal. 2,260

134 Prepaid Insurance

Dec. 9 3,600
Bal. 3,600
 141 Equipment
Dec. 1 15,000
31 6,000
Bal. 21,000

202 Accounts Payable

800 Dec. 18
4,750 31
Bal. 5,550

211 Customer Deposits

2,500 Dec. 31
Bal. 2,500

301 Common Stock

100 Dec. 1
100
Bal. 200

302 Paid in Capital

15,900 Dec. 1
Bal. 15,900

401 Fees Income

56,545 Dec. 7
8,900 15
6,450 19
500 26
6,565 29
870 31
Bal. 79,830

511 Salaries Expense

Dec. 30 5,400
Bal. 5,400

514 Utilities Expense

Dec. 28 235
Bal. 235

529 Advertising Expense

Dec. 12 395
22 150
Bal. 545
 532 Telephone Expense
Dec. 23 215
Bal. 215

535 Maintenance Expense

Dec. 21 1,275
31 415
Bal. 1,690

Arrow Accounting Services

Unadjusted Trial Balance
December 31, 20x1

Accounts Debit Credit

Cash 82,035
Accounts Receivable 4,000
Supplies 2,260
Prepaid Insurance 3,600
Equipment 21,000
Accounts Payable 5,550
Customer Deposits 2,500
Common Stock 200
Paid in Capital 15,900
H. Fowl, Capital 17,000
Fees Income 79,830
Salaries Expense 5,400
Utilities Expense 235
Advertising Expense 545
Telephone Expense 215
Maintenance Expense 1,690
Totals 120,980 120,980

Closing Entries
Fees Income 79,830
Income Summary 79,830
To close all income accounts to income summary.

Income Summary 12,920

Salaries Expense 5,400
Utilities Expense 235
Advertising Expense 545
Telephone Expense 215
Maintenance Expense 1,690
Supplies Expense 1,785
Rent Expense 2,500
Insurance Expense 300
Depreciation Expense 250
To close all expense accounts to income summary

Income Summary 66,910

H. Fowl, Capital 66,910
To close income summary to the appropriate
capital account.
Arrow Accounting Services
Income Statement
For the month ended December 31, 20x1

Fees Income 79,830

Less: Operating Expenses
Salaries Expense 5,400
Utilities Expense 235
Advertising Expense 545
Telephone Expense 215
Maintenance Expense 1,690
Supplies Expense 1,785
Rent Expense 2,500
Insurance Expense 300
Depreciation Expense 250 12,920
Net Income 66,910